Apple Responds to Huawei Threat by Slashing iPhone 15 Prices in China

[frownface]

Problem with discounting is that it becomes the new norm and eventually no one pays full price anymore because they know they'll get it on discount if they wait some months.

Exactly what happened with samsung here; not it's not unusual to see discounts a month after launch on new items because no one buys at full price.

 

[svish]

Good discounts. Would have been nice if similar discounts are offered in other countries too.

 

[AlexESP]

So why did apple admit sales in China were down by paying this lawsuit from shareholders?

Apple reaches $490 million settlement over CEO Cook's China sales comments

Apple agreed to pay $490 million to settle a class-action lawsuit that alleged Chief Executive Tim Cook defrauded shareholders by concealing falling demand for iPhones in China.

www.reuters.com

1. This was 2018.
2. It was a vague reply (“I would not put China in that category”) instead of a easily-verifiable statement (“iPhone sales are growing in mainland China”).

 

[fl010]

The ship has sailed...
Compared to what Huawei, Honor, Pixel offers in terms of AI, the Iphone is definitely behind, always with the worn-out excuse of privacy.

Yeah sure, take another 2-3 years to catch up, no problem paying for a high end device with less features than its competitors.
But they will probably break their privacy commitment and will use OpenAI to be able to provide at least something with IOS 18. Interested in how they will justify that 😀

 

[stinksroundhere]

Misreporting based on misreporting in the financial media.

Almost all companies are cutting prices in China because spending has dropped. Has nothing to do with "Huawei threat".

 

[Tomasulu]

Maybe don't BUY the same product over and over and over again...

A typical user can go from iPhone 12 to 16 (based on the rumors) and not feel a lot has changed. It sure doesn’t look like much has changed design wise. And that’s what will kill Apple. People are delaying to upgrade the product that accounts for half of apples revenue. Until my current iPhone 13 I either upgrade yearly or skip one gen. Now I think I can keep my 13 until 17 or 18.

 

[incidentallycheckout]

Please stop with the emotionally-charged headlines and articles. I expect better from MacRumors.

I'm confused. What is emotionally charged exactly about this headline and article?

 

[Nuno Lopes]

Competition seams to be working in China regarding this context. While in the US competition is banned or rebranded.

 

[JapanApple]

Good discounts. Would have been nice if similar discounts are offered in other countries too.

Japan, we do not get much in this matter. Use to be but since the government stepped in a changed the "Zero" phone and plan deals. We used to get subsidized 100,000 yen when 2 people changed carrier providers. That is how we got our first iPhones. Phones are not cheap in Japan (when using domestic money from native people in Japan ).it's getting worse.

 

[turbineseaplane]

Competition seams to be working in China regarding this context. While in the US competition is banned or rebranded.

We don't bother enforcing antitrust anymore and everything is captured by lobbyists.

The "capitalists" in the US have decided it's much easier and more profitable to just rig the game as much as possible.

 

[webkit]

While in the US competition is banned or rebranded.

Not quite. There are several phone brands sold in the U.S. including Chinese brands like OnePlus and TCL. Global/international versions of others like ZTE, Oppo, Xiaomi, Huawei, etc. are also available in the U.S. through Amazon and other sites. Sales are dominated by Apple, Samsung, Motorola (owned by Lenovo) and Google, however.

 

[Nuno Lopes]

Not quite. There are several phone brands sold in the U.S. including Chinese brands like OnePlus and TCL. Global/international versions of others like ZTE, Oppo, Xiaomi, Huawei, etc. are also available in the U.S. through Amazon and other sites.

It does not look like those are strong competitors so not much of a problem. We now have a TikTok problem. HUAWEI was #2 ahead of Apple in 2017, global. Now they don't even appear in the graphs.

Just saying. Maybe its all a coincidence.

 

[webkit]

It does not look like those are strong competitors so not much of a problem. We now have a TikTok problem. HUAWEI was #2 ahead of Apple in 2017, global. Now they don't even appear in the graphs.

Just saying. Maybe its all a coincidence.

They may not be "strong" competitors but they are at least available here. There are many phone brands in China that aren't "strong" competitors in that market either.

As far as banning goes, that happens in China and other countries too. If China didn't ban or restrict use of iPhones in China, the iPhone wouldn't be seeing as much of a sales decline there.

 

[Dj64Mk7]

I'm confused. What is emotionally charged exactly about this headline and article?

Apple Responds to Huawei Threat by Slashing iPhone 15 Prices in China​

“Huawei Threat” and “Slashing iPhone 15 Prices”

There is no threat, only healthy competition. By using the word threat, the author positions Huawei in such a way where one might believe there was some sort of targeted attack on Apple. It is designed to get clicks, not be honest, truthful, and straightforward. It appeals to emotions, not logic, in the same way that tabloid magazines on newsstands in the grocery store make you feel a certain way.

MacRumors is an informational blog about Apple, not a sensationalist tabloid-style site that covers Apple products. Years ago, I stopped visiting Cult of Mac for this exact reason, and I don’t really want to move to 9to5Mac, because their website is heavy and janky.

 

[webkit]

“Huawei Threat” and “Slashing iPhone 15 Prices”

There is no threat, only healthy competition. By using the word threat, the author positions Huawei in such a way where one might believe there was some sort of targeted attack on Apple. It is designed to get clicks, not be honest, truthful, and straightforward. It appeals to emotions, not logic, in the same way that tabloid magazines on newsstands in the grocery store make you feel a certain way.

Huawei has been aggressively opening retail stores in China (including some very close to Apple stores) in order to more directly compete with Apple. Huawei has also introduced a lineup of smartphones with features and price points that directly compete with Apple's iPhone 15 line.

I don't think it's unreasonable to conclude that Huawei is "targeting" Apple, at least to some degree, and therefore is a competitive threat to Apple.

 

[9081094]

Apple is going to have to have a major redesign every year to compete in China. There is a clear trend of Apple’s devices struggling in China for years with minimal design changes.

Not only in China I think. When Huawei wasn’t banned out of Europe it also wiped the floor with Apple by offering better phones at lower prices. That was in the time they copied and imitate what Apple was doing. This time around they leapfrog the iPhone in almost any aspect you can think of. Apple uses most of its inner parts from Chinese companies and needs urgently things to redefine itself from the competition. But I think it’s too late for that. iPhone 16 looks the same as iPhone 15, 14, 13, 12 sigh.

Oh, and not to forget that Huawei is pouring more than double the money in R&D compared to Apple. And Huawei did succeed in developing an EV where most car companies, even Tesla, are jealous at.

 

[Mousse]

Problem with discounting is that it becomes the new norm and eventually no one pays full price anymore because they know they'll get it on discount if they wait some months.

Good discounts. Would have been nice if similar discounts are offered in other countries too.

It's not a discount; it's what the market will bear. Apple overpriced their devices in China. Apple hedged its bet on the blue bubble. The blue bubble is a nonfactor over there, unlike in the West where the blue bubble is a status symbol.

 

[rgwebb]

Not only in China I think. When Huawei wasn’t banned out of Europe it also wiped the floor with Apple by offering better phones at lower prices. That was in the time they copied and imitate what Apple was doing. This time around they leapfrog the iPhone in almost any aspect you can think of. Apple uses most of its inner parts from Chinese companies and needs urgently things to redefine itself from the competition. But I think it’s too late for that. iPhone 16 looks the same as iPhone 15, 14, 13, 12 sigh.

Oh, and not to forget that Huawei is pouring more than double the money in R&D compared to Apple. And Huawei did succeed in developing an EV where most car companies, even Tesla, are jealous at.

Good thing we have tariffs and import bans to reward our industries for failing to innovate!

 

[webkit]

It's not a discount; it's what the market will bear. Apple overpriced their devices in China. Apple hedged its bet on the blue bubble. The blue bubble is a nonfactor over there, unlike in the West where the blue bubble is a status symbol.

They’re still discounts. Discounts, which can be temporary, are typically used to address price or product competition/changes and other marketplace factors. That's what we have here. This is not some sort of "blue bubble" issue. China's ban/restrictions on iPhones plus Huawei’s recent launch of its Pura line, opening of new retail stores, etc. has simply led to the discounting of iPhones in some places. Note that Apple's China website still sells them at the regular retail prices (no discounts). Even before the discounts, pre-VAT/sales tax iPhone prices in China were already lower than they are in the U.S.

 

[9081094]

They’re still discounts. Discounts, which can be temporary, are typically used to address price or product competition/changes and other marketplace factors. That's what we have here. This is not some sort of "blue bubble" issue. China's ban/restrictions on iPhones plus Huawei’s recent launch of its Pura line, opening of new retail stores, etc. has simply led to the discounting of iPhones in some places. Note that Apple's China website still sells them at the regular retail prices (no discounts). Even before the discounts, pre-VAT/sales tax iPhone prices in China were already lower than they are in the U.S.

Unless the iPhone 16 has something very compelling up its sleeve, Apple is done in China. Too much competition with more value for money. Every midrange phones have very good cameras and screens with 120hz refresh rates. iOS isn’t the reason to switch either. I know lots of friends who don’t get used to iOS and swear by Android. When was the last time iPhone SE got an update? It’s the same layout as an iPhone 6 and not compelling in anyway.

Apple is losing market share on all fronts and it has only itself to blame.

It’s time to invest that enormous amount of money in design and in-house innovations that competitors can’t match.

Years and years of the same is taking its tolls.

 

[webkit]

Unless the iPhone 16 has something very compelling up its sleeve, Apple is done in China. Too much competition with more value for money. Every midrange phones have very good cameras and screens with 120hz refresh rates. iOS isn’t the reason to switch either. I know lots of friends who don’t get used to iOS and swear by Android. When was the last time iPhone SE got an update? It’s the same layout as an iPhone 6 and not compelling in anyway.

Apple is losing market share on all fronts and it has only itself to blame.

It’s time to invest that enormous amount of money in design and in-house innovations that competitors can’t match.

Years and years of the same is taking its tolls.

"Done" seems to be a strong word but as long as China continues bans/restrictions on iPhones, it will be a tougher market for Apple no matter how competitive the phone is. iPhones sales in China were actually pretty good in 2021, 2022 and into 2023 before the ban/restrictions started to go into effect.

 

[rgwebb]

"Done" seems to be a strong word but as long as China continues bans/restrictions on iPhones, it will be a tougher market for Apple no matter how competitive the phone is. iPhones sales in China were actually pretty good in 2021, 2022 and into 2023 before the ban/restrictions started to go into effect.

I guess Apple should feel fortunate that they don't have to worry about Huawei competition in the United States, Canada, and UK.

 

[Mousse]

I guess Apple should feel fortunate that they don't have to worry about Huawei competition in the United States, Canada, and UK.

Huawei made some best value phones back when we could buy them the US. I can't speak for now, because I can't get my grubby mitts on a Huawei phone anymore.😒 I had an Honor 7x (midrange phone at the time, selling at entry level prices), custom ROM. It was faster than a superior spec'ed Galaxy S8 running Samsung's bloatware.

If I could install the same ROM on the Sammy, it would have been superior to the Honor. A svelte OS matters.

 

[webkit]

I guess Apple should feel fortunate that they don't have to worry about Huawei competition in the United States, Canada, and UK.

Yes, and feel unfortunate having to deal with bans/restrictions in China.

 

[RumorChaser]

China has enjoyed a rapid economic boom for nearly 40 years up until about 2020, where their ever increasing purchasing power meant strong demands for foreign (considered more prestigious) and luxury goods. Apple never had any problem selling iPhones despite them increasing in price over the years in China because the economy was booming.

The economy leveled off in 2021, started going downhill from 2022, and the situation has worsen in the past 2 years, triggered by a property crisis and has now spread over the whole economy. When the inflation is merely slowing its pace for most of the world, China is experiencing deflation, when things are instead getting cheaper the longer you wait. The Chinese people are finally realizing that the economic downturn is not a temporary situation. Apple is barely the only one impacted. All sorts of foreign made luxury items - from LV bags to BMW to iPhone/Mac - are having problem selling in once one of the world's largest market.

As I've said a few months ago on another article, the downturn in iPhone sales in China is due to the economic situation rather than any of the competition. Rather than saying Apple is reacting to the competition, it is more accurate to say every phone maker including XiaoMi, Huawei and Apple are reacting to people less willing to spend on expensive items.

In terms of pricing, the Chinese government collects a tax that is baked into the list price of items sold in China (just like how prices are listed in the EU and in many places around the world). For most of the 2010s, iPhone list prices were higher in China than in Hong Kong and the US by about 20% (to account for local tax and currency fluctuations). There was a story in 2016 about a man strapping 96 iPhones onto his body to smuggle iPhones from Hong Kong to resell for a profit. That means if the list prices in China is the same as the US, Apple is already providing about a 20% discount. Another 20% discount on top of that is unprecedented for Apple. They only cut 10% last year for the iPhone 14.

It will be interesting to see how Apple proceeds from here with pricing. Since the rest of the world seems to be doing just fine economically, it does not make sense to cut prices globally. But sales in China will continue to tank. I suspect people might actually start smuggling the other way around - from China to the West - if the price difference persists.