Apple Inc. rarely offers commentary on its business outside of its quarterly earnings calls. However, reports indicate that the company is planning to offer rare discounts on iPhones and MacBook Air computers during a Lunar New Year event in China. Several iPhone models will see a price reduction of approximately $70 during the sale.
This move comes as Apple faces increased competition in China. Huawei Technologies Co. Ltd., once hindered by sanctions, has emerged as a strong rival. Additionally, the Chinese government has reportedly encouraged government workers to avoid using iPhones for official purposes. Furthermore, China is currently experiencing a period of deflation, which could have broader implications for U.S. companies selling products in the country.
Despite a slight decline in sales of over 2% in Greater China during the September quarter, Apple's CEO, Tim Cook, expressed optimism during the company's last earnings call. Cook noted that sales would have increased if not for currency fluctuations. He also highlighted that the iPhone business achieved a new revenue record in Greater China during the September quarter, while the Mac and iPad businesses faced challenging comparisons to the previous year, mirroring trends seen in other regions.
Although Apple has not yet provided an official comment on its pricing strategy in China, this move reflects the company's efforts to navigate the competitive landscape and economic challenges within the Chinese market.
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