Apple Inc’s latest iPhones are selling at discounts of more than US$100 in China, an unusually steep price cut just months after launch that suggests dwindling demand for even its highest-end devices.
JD.com Inc (京東) and state carrier China Mobile Ltd (中國移動) are among the retailers taking 800 yuan (US$118) off the iPhone 14 Pro range over 11 days. Retailers in the southern electronics hub of Shenzhen have also begun cutting prices for the same handsets by 700 yuan, the China Securities Journal reported after visiting outlets in the city.
Meanwhile, Apple’s own local Web site continued to offer devices at regular prices.
Photo: Reuters
The discounting emerged at about the end of the Lunar New Year, when retailers gear up for a holiday shopping spree before schools reopen. While it is unclear how long the cuts might persist, they point to weak demand in the world’s largest smartphone market just as Apple is counting on a recovery in China.
Unusually, the about 7 percent to 9 percent discounts on the iPhone Pro range mirrored bargains offered on lower-end models, which typically get cut first.
“The discount seems bigger than what we found in January, which was 3-4 percent,” Jefferies Group LLC analysts led by Edison Lee (李裕生) wrote in a research note on Sunday. “We see that as a sign of weak demand.”
An Apple representative did not immediately respond to a request seeking comment.
Apple last week reported its first quarterly revenue decline since 2019, blaming output disruptions at its biggest manufacturing partner in China, as well as sputtering global demand, but Apple chief executive officer Tim Cook pointed to a rebound in the Chinese market, which had only just dropped strict COVID-19 restrictions that hammered the economy.
Smartphone sales are likely to contract again this year after a decline last year, companies including Samsung Electronics Co have warned.
While Cupertino, California-based Apple did not provide a detailed outlook for this quarter, it said its performance would mirror that of the fourth quarter last year.
That suggests a revenue decline of about 5 percent could be on the cards, though the company has said iPhone revenue would accelerate this quarter.
Sales of the four iPhone 14 models over their first 38 days on the Chinese market were down 28 percent compared with the iPhone 13 models, Jefferies analysts have estimated.
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