In the Chinese smartphone market, there continues to be a trend of restrained consumer demand for the iPhone.
This week, the media reported that the cost of the latest generation of Apple’s smartphone in the mentioned country was reduced by $180. This is a significant price drop, which can most likely be interpreted as evidence that the technology giant from the United States is currently facing problems in China. The decline in consumer interest in Apple products in the Asian country turned out to be a more stable reality than the company initially assumed when the first signs of a slowdown in sales were recorded last year.
Chinese buyers can purchase the iPhone 15 Pro Max at discounted prices on online platforms such as Tmall and JD.com. At the same time, the tech giant continues to sell smartphones at standard prices in its branded stores.
The iPhone 15 debuted last September. This development of the technology giant has demonstrated sales volumes that are lower than those of previous generations of smartphones. The result, which Apple evidently did not consider as the most favorable scenario when launching sales of a new product in China, is largely due to factors such as the deterioration of economic growth in the Asian country, which had a certain impact on the financial capabilities of citizens, and increased competition from the local manufacturer Huawei.
IDC analyst Will Wong, during a conversation with media representatives, said that the technology giant is catching up with the deflation trend in China, intending to improve demand for the iPhone. In January, in the smartphone market of the Asian country, sales of mobile phones of the technology giant from the United States decreased by about 10% year-on-year. At the same time, Huawei’s similar indicator showed growth in the triple digits.
New discounts on Apple smartphones were offered to Chinese consumers after the Lunar New Year holiday and several rare cost reductions for these products in 2023.
In the fourth quarter of last year, the sales of mobile phones of the technology giant from the United States showed a decrease of 13%. This result is the worst for the company in recent years of its commercial presence in China.
Ivan Lam of Counterpoint Research said that Apple is offering third-party channels a short-term promotional price as part of festive marketing solutions for International Women’s Day, noting that the dynamic of brand sales in the Asian country is increasingly dependent on advertising campaigns.
Last week it became known that smartphone sales decreased in the United States in January. The corresponding indicator showed a drop of 10%. Counterpoint Research published the relevant data. This is extremely unpleasant news for Apple since the domestic market is one of the most significant business spaces for the company.
Currently, consumers with limited personal budgets are increasing smartphone refresh periods in the United States. This means that they use the devices longer and buy new models less often. During the coronavirus pandemic, sales figures in the American smartphone market were at their peak. Since then, consumers have become more cautious about making purchases, including due to the deteriorating economic situation. Moreover, smartphone manufacturers have not offered Americans a new product that would meet this definition not only from a formal point of view but also in terms of actual characteristics.
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