Apple's 10% iPhone Discount Boosted China Shipments to 12% in March

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Apple iPhone 15 series devices are displayed for sale at The Grove Apple retail store on release day in Los Angeles, California, on September 22, 2023. Photo by PATRICK T. FALLON/AFP via Getty Images

In March, Reuters reported that iPhone shipments in China surged by approximately 12%, a notable turnaround made possible by discounts initiated by Apple and its retail partners.

The positive data regarding increased iPhone shipments in China came after Apple CEO Tim Cook mentioned, in response to questions from analysts, that the iPhone's performance in mainland China had improved. However, Cook did not provide specific details regarding this improvement.

This growth contrasts starkly with the preceding two months of 2024, which witnessed a steep 37% decline in sales. VCPost noted that it is due to Huawei's increasing sales and popularity in the country.

Apple Sales in China

Apple has struggled to revive its Chinese market since 2023 due to heightened competition from local competitors like Huawei Technologies and unofficial limitations on iPhone usage in specific state organizations and businesses.

Foreign phone shipments experiencing a 27% decline in the first quarter of 2024 were also considered.

Now, the price adjustments made by Apple and its third-party retailers in China, such as JD.com, TMall, and Pinduodu earlier in 2024, seem to have yielded positive outcomes.

Retailers' discounts, which can be as high as 10%, were intended to encourage more people to buy iPhones, especially considering the tough market conditions and the restrictions imposed by Chinese companies and government entities.

The recent quarterly revenue beat in China surprised investors, countering a trend of declining iPhone sales witnessed over the preceding months.

Apple remains committed to the Chinese market despite the struggle, contributing 18% to its overall net sales.

Tags
Iphone, Apple, China

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