14 DAY TRIAL // Apple has decided to cut the price of 2017 and 2018 iPhones for the Chinese market, offering local vendors substantial price discounts for new devices, according to a report.
China’s National Business Daily reveals that Apple reduced the price of the iPhone XR by as much as 450 yuan (approximately $65), which means that the most affordable 2018 iPhone model now costs 5250 yuan, or about $770.
The same report says that Apple is offering discounts for other iPhones as well, and on average, the price of each model has been reduced by approximately $60.
Just as expected, Apple hasn’t released any official announcement regarding the price cuts, but this is believed to be a desperate measure supposed to boost sales during difficult times both worldwide and in China.
Apple: No reason to worry
Sales of new iPhones have declined significantly, and Apple’s CEO Tim Cook blamed the growing tension between China and the US on import taxes and the company’s battery replacement program for the slowdown.
However, one of the main factors for the poor iPhone demand is without a doubt the high prices of the new models, and with today’s move, Apple confirms this is indeed the case. It’ll be interesting to see to what degree an iPhone discount improves sales in China, a challenging market for the Cupertino-based giant, especially after the iPhone injunction obtained by Qualcomm in late 2018.
Earlier this week, it was reported that Apple cut production by as much as 10 percent in an effort to align inventory with the existing demand. Apple suppliers expect a further decline in the coming months, especially as the demand is likely to be reduced following the holiday season.
In the meantime, CEO Tim Cook says there’s no reason to be worried about the current market performance of the iPhone, pointing out that the Apple ecosystem is strong enough to maintain its leading position in the long term.