Apple (AAPL) has initiated a robust discounting campaign on its official Tmall site in China, offering discounts of up to 2,300 yuan ($318) on select iPhone models. This move comes as the U.S. tech giant seeks to defend its position in the high-end smartphone market against increasing competition from local rivals such as Huawei (HWT).
Significant Discounts to Attract Consumers
Running from May 20 to May 28, the current discount campaign is more substantial than the one Apple offered in February. While the highest discount in the February campaign was 1,150 yuan, this time, discounts are as high as 2,300 yuan. The steepest discount applies to the 1TB iPhone 15 Pro Max model, with other models also seeing significant price cuts. For example, the 128 GB version of the base iPhone 15 model is available with a discount of 1,400 yuan, according to a Reuters check on Monday.
Rising Competition from Huawei
The increased competitive pressure on Apple comes after Huawei introduced its new series of high-end smartphones, the Pura 70, last month. This followed the launch of the Mate 60 in August last year. Apple’s aggressive discounting strategy aims to counteract Huawei’s growing presence in the high-end market segment.
Impact of Previous Discount Campaigns
Apple’s previous discounting effort in February appears to have helped the company mitigate a sales slowdown in China. According to Reuters’ calculations based on data from the China Academy of Information and Communications Technology (CAICT), Apple’s shipments in China increased by 12% in March. This marks a significant improvement from the first two months of 2024, when the company experienced a 37% slump in sales.
With this new discounting campaign, Apple hopes to maintain its competitive edge and attract more consumers in the highly contested Chinese market.