Apple is witnessing a strong resurgence in iPhone sales in China, driven by strategic price reductions targeting cost-conscious consumers amidst economic challenges.
Shipments of foreign-branded smartphones, predominantly iPhones, soared by 52% in April to 3.489 million units, as reported by the China Academy of Information and Communications Technology (CAICT).
The recent surge marks a significant acceleration from the 12% growth seen in March, signaling a notable rebound in Apple’s fortunes in its largest overseas market.
The Global Times, a state-owned tabloid, has hailed this rebound as “impressive.”
Earlier this year, Apple faced challenges in China, losing its top position in the smartphone market with a 19% decline in shipments in the first quarter, primarily due to heightened competition from local brands like Huawei.
However, Apple’s strategic pricing adjustments, including significant discounts on platforms like Tmall and JD.com, have sparked renewed interest among consumers.
The recent price cuts, including reductions of up to 23% on certain iPhone models, coincide with China’s annual “618” shopping festival, a major online shopping event.
These discounts have brought the iPhone 15 into price parity with competitors like Xiaomi and Huawei, prompting analysts to note that such aggressive pricing is essential for Apple to defend its market share.
Jefferies analysts highlight that these pricing strategies not only help Apple regain market share but also exert pressure on competitors to further lower prices.
However, this intense pricing competition may lead to margin pressures across the smartphone industry, impacting profitability in the coming quarters.
Source-CNN
