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The
U.S. tech giant cut prices of some iPhones by 5%, its Chinese
website showed on Monday. The time-limited promotion, branded as
a Lunar New Year event, will last from Jan. 18 through Jan. 21
in a lead-up to the holiday in mid-February.
Sales of Apple's latest iPhone 15 series of handsets have been
far worse than previous models in China.
Home-grown rivals such as Huawei Technologies and Xiaomi offer
competitive models, while sources have said some companies and
government departments have been limiting staffers' use of Apple
devices - mirroring U.S. government restrictions of Chinese apps
on security grounds.
Chinese iPhone sales dropped 30% in the first week of 2024
versus the same period a year earlier, Jefferies analysts said
in a client note, having fallen 3% for all of 2023. Analysts
expect the competitive landscape to get tougher this year.
Apple has not cut prices for its latest iPhones in years. The
cuts come after it surprised the market by not raising prices
for the iPhone 15 series at its September launch.
Online shopping platforms including Pinduoduo have been slashing
prices of the iPhone 15 and iPhone 15 Pro by as much as 16%
since the beginning of the year.
Nicole Peng, senior vice president of market research firm
Canalys, said the discounts did not come as a surprise as Apple
is under pressure to boost sales globally, and especially in
China, amid intensifying competition and Apple fans' growing
reluctance to upgrade.
"It is clear that Huawei is making a comeback," Peng said, "Some
Chinese consumers may return to using Huawei as driven by
patriotism."
Canalys expects Apple sales this year to stay flat worldwide
while suffering a slight decline in China.
Apple did not respond to a request for comment.
(Reporting by Josh Ye; Editing by Christopher Cushing and Ros
Russell)
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