Apple’s phone sales have been struggling in China, but as the 618 shopping festival, or June 18, comes up, there is a chance to turn the tide.
The festival typically lasts about two weeks and is considered the second-largest annual shopping festival in China, frequently generating over $100 billion in revenue for its largest e-commerce platforms.
Apple’s entire game plan for the festival is currently unclear, but people have discovered iPhones selling for less than the official price on some e-commerce sites. The American iPhone maker did not deny or clarify if the discounts in China are part of an ongoing campaign to boost sales.
Apple may be using discounts to lure Chinese consumers back to its products
The discounts have seen an iPhone 16 Pro with 128GB of storage available on an interest-free 12-month payment plan listed at 5,380 yuan, which is about $745. Meanwhile, Apple’s official listing price is 7,999 yuan on its mainland China website, a $360 difference.
A 256GB iPhone 16 Pro on the same payment plan was found at 6,220 yuan, down from Apple’s official listing price of 8,999 yuan.
On Tmall, a subsidiary of Chinese e-commerce giant Alibaba, there was also at least one brand new iPhone 16 listed for 5,299 yuan, also around $230 lower than the Apple official listing price of 6,999 yuan.
On Apple’s US official website, a 128GB iPhone 16 Pro is listed as $999, while an iPhone 16 with the same amount of storage is listed at $799.
These discounts come amid Apple’s sales struggles in China, a side effect of cheaper domestic brands gaining popularity and consumers growing thriftier. According to reports, Apple’s iPhone shipments fell by 9% in China in comparison to the first quarter of 2024, and its Q2 sales in China were not as great as expected.
According to a report by the International Data Corporation, smartphone shipments in China increased by 3.3% overall in the first quarter, a growth that has been attributed largely to local Apple rivals like Xiaomi becoming more popular.
Xiaomi reportedly witnessed a 39.9% increase in shipments in China in the same quarter compared to 2024. The reason is obvious: Xiaomi makes cheaper products, which aligns with the current behavior of Chinese consumers.
A Xiaomi 15 Pro, one of its latest models that boasts at least 256GB in storage, is available for 4,999 yuan on its China website, which is less than $700.
The iPhone discounts may be happening with Apple’s blessing
Apple’s popularity in China has greatly reduced for many reasons, but one of the recent ones is that its products were exempted from consumer subsidies by the Chinese government.
The subsidies on smartphones and other tech devices were just expanded to boost soft consumer spending because China has been grappling with internal economic issues triggered by a prolonged property market crisis.
Unfortunately, the initiative, which began in January, only covers products priced under 6,000 yuan ($821), meaning many Apple models were too expensive to qualify for the discount.
Apple is yet to clarify what exactly is going on, but according to some reports, the discrepancy in prices is an attempt by Chinese e-commerce platforms to spur sales amid the US tech giant’s declining sales.
The move comes as Chinese online retailers go all out for cost-conscious consumers in a slowing economy, with price cuts taking centre stage ahead of the annual “618” shopping festival.
While it is still unclear if these discounts are coming from Apple or the e-commerce sites themselves, Will Wong, a senior smartphone analyst at IDC, says it is not the first time the iconic company is resorting to price cuts on its latest models to boost sales during the “618” festival.
“Apple is repeating its sales promotion strategy for the shopping event last year,” Wong said. “It’s cutting prices on iPhone 16 Pro so that it can enjoy China’s state subsidies on digital products.”
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