Among Apple Inc.’s (NASDAQ: AAPL) biggest strengths is that it rarely offers product price discounts. Carriers may offer deals for people who buy iPhones, but price cuts are almost never an option for those who buy directly from the company. Apple backed away from the philosophy by cutting prices on its flagship iPhone 15 in China. China is the world’s largest smartphone market and among the most competitive. (Here are five reasons to avoid Apple products today.)
Several media outlets report the iPhone 15 price cut will be part of a four-day sale. The cut will be about 7% off the normal retail prices during the period. The decision is not trivial. Reuters reports that iPhone sales dropped 30% in China in the first week of the new year, compared to the same week of 2023.
Apple’s China revenue in its most recently reported quarter was $15.1 billion, out of Apple’s total $89.5 billion. That number was down from $15.5 billion year over year.
Statista reports that smartphone penetration in the China market is 72% of the population. That means the number of smartphone users is close to a billion people.
Accurate data about smartphone market share differs among research companies. Among the most respected of those who gather information, Canalys showed that Apple’s market share was 10% in the third quarter of last year. The top manufacturer is the local company Honor. It had a share of 11% based on shipments. Other local companies Oppo and Vivo had 10% each.
Apple’s stock has been hit this year. Microsoft passed it as the most valuable company traded on U.S. markets. Its stock is down 3% in 2024, after a run-up of about 50% last year.
Investors worry that Apple’s revenue growth has slowed for some support from the new Chinese price discount.
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