Apple is offering unprecedented price cuts in China during the annual “618” shopping festival to boost sales in the face of stiff competition from Chinese smartphone manufacturers. The hefty discounts include up to 23% off some smartphones on Tmall, an Amazon-like site owned by Alibaba. The price of an iPhone 15 has been slashed to 4,599 yuan, down from the original price of 5,999 yuan, as part of Apple’s efforts to improve its market share in China.
The “618” shopping festival, launched by e-commerce firm JD.com in 2008, is the second biggest online shopping bonanza in China after Singles Day. Major Chinese e-commerce sites and retailers offer weeks of promotions during this period to attract customers. Stars like Rihanna also participate in the festival, hosting live streams showcasing products. Apple’s discounts on its iPhone 15 models and iPads are the largest ever offered in its biggest overseas market.
Jefferies analysts stated that Apple needs to aggressively defend its market share in China, which has declined to 15.7% in the first quarter of this year from 19.7% a year ago. Huawei, on the other hand, has seen a 70% increase in sales, narrowing the gap with Apple. With the price reductions in China, Apple’s iPhone 15 is now in the same price range as smartphones by Xiaomi and Huawei. The competition in the smartphone market has led to a price war, with almost every sector offering discounts to attract consumers.
While the price cutting has intensified during the “618” shopping festival, some companies are boycotting the event due to aggressive pricing policies. More than 50 book publishers issued joint statements saying they would not participate in this year’s festival because of the pressure to offer discounts of 20% to 30% on JD.com. They believe that such competitive pricing is detrimental to the stability and prosperity of the market. State-owned publishing companies also expressed opposition to chaotic price wars and called for more effective control in the market.
Overall, the “618” shopping festival in China has become a key barometer of consumption trends in the country, with increasing competition among e-commerce sites and retailers to offer discounts. Apple’s significant price cuts during this festival reflect its efforts to regain market share in China, where it faces tough competition from local smartphone makers. While the price war has become intense across various sectors, some companies are pushing back against excessive discount pressure to maintain market stability and integrity.
