iPhones go through price reduction wave in China

A man holds the newly released Apple iPhone XS and XS Max during a product demonstration following the Apple launch event at the Steve Jobs Theater in Cupertino, California, US. Photograph:( Reuters )

Reuters Shanghai, China Jan 14, 2019, 12.41 PM (IST)

Apple's mobile phones are recently going through a price reduction wave on the Chinese market due to the company's weak business performance, with the latest iPhone model dropping as much as 1400 yuan (about $207) in some places.

Due to the unexpected low sales, Apple's mobile phones experienced a big price cut in the Chinese market. In an electronics store in Shanghai, all the iPhone products, from iPhone 7 to the latest model XS MAX, have been labelled with a price drop. Among them, the price of 256G iPhone XS MAX dropped from 10,999 yuan to 9,899 yuan (from $1626.4 to $1463.7).

"People's apple craze is on the wane, so we have to lower the price to ensure sales," said Zhou Shunliang, owner of the electronics store.

"The reason behind the price drops is that more people have turned to home-made brands," said a resident.

Various Chinese major e-commerce platforms have also launched price reduction strategies to promote sales. On Su'ning and Tmall online platforms, some iPhones are 1400 yuan ($354.9) cheaper than on Apple's official website. On Jingdong, the price of 64G iPhone 8 dropped by 700 yuan ($103.5), and the price of iPhone 8 plus dropped by 900 yuan ($133).

Some residents, however, said that the price reduction is still not enough, considering the extra high original price.

"The price drop is far from enough. I think it should be reduced by at least 30 per cent, then it would be a worthy price. The original price is too high," said a citizen.

"The latest model didn't sell well, as it is way too expensive," said another citizen.

Story highlights

'People's apple craze is on the wane, so we have to lower the price to ensure sales,'  said the owner of the electronics store.