Business Desk
Jun 02, 2024
After a troubling start to the year, Apple sales have witnessed a rebound in the Chinese market, thanks to its discounted prices against the backdrop of a burgeoning economic downturn.
iPhone shipments to China, which comprise most of the foreign smartphones found in the country, surged by an astounding 52% this April to stand at 3.489 million units, as per the China Academy of Information and Communications Technology (CICT), a government regulatory body.
The surge is a major relief from the pessimistic outcome of the previous month where foreign-branded smartphones racked growth worth a measly 12%.
Considering China’s centrality to Apple as its biggest foreign market, the tech giant seeks to overturn the competition offered to it by household names like Xiaomi and Huawei, with the latter riding off the success of its Mate 60 series.
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In the first quarter of this year, the company lost its top spot in the country’s smartphone market as shipments tumbled by 19%, sales took a hit from worsening employment and income prospects.
What further added to the woes of the iPhone maker are the consumers who began to cap their spending and move away from expensive purchases.
This trend has been reversed, however, as the company seeks to reclaim its former top spot by going on an aggressive price-slashing company to lure back customers, consequently, sales began bouncing back as early as March.
The campaign intensified last week when Apple announced it was partnering up with online retailers such as Tmail and JD.com to offer as much as 23% discount until May 28th.
This brings the iPhone 15 to an equal pricing range as Huawei's and Xiaomi's offerings, which are Apple’s closest local competitors.
Jefferies analysts felt that these price reductions were, “the only way” for Apple to defend itself and counteract the pressure.
“The discounts on high-end models could extend into the third quarter of 2024, pressuring all smartphone (makers’) margins,” they added.
