iPhones Experience Price Reductions in China through Apple's Promotional Offers
In the dynamic landscape of China's smartphone market, global tech giant Apple is facing increasing competition from domestic brands such as Vivo and Xiaomi. This competition has led Apple to strategically adjust prices on iPhone models to maintain its competitiveness.
Following a period of decline from mid-2022 to early 2025 due to trade tensions, regulatory issues, and domestic competition, Apple experienced an 8% year-over-year increase in iPhone sales in mainland China during the second quarter of 2025[1][3]. This rebound can be attributed to significant price adjustments made in May 2025 ahead of China’s mid-year 618 shopping festival. During this period, Apple and e-commerce platforms like JD.com and Tmall offered discounts of up to 2,530 yuan ($351) on select iPhone 16 models[1][2].
The value-seeking trend among Chinese consumers has made these price discounts more attractive. Apple also enhanced trade-in credit offers and benefited from government subsidies for devices priced below 6,000 yuan, further incentivizing consumers[1][2].
While domestic brands like Huawei led growth with a 12% increase in Q2 2025, Vivo actually saw a 9% decline in smartphone sell-through during the same period. Apple’s price cuts and expanded offerings, including the lower-cost iPhone 16e model, helped it compete more effectively against these local players in a highly competitive and price-sensitive market[3][4].
Huawei, too, has announced price cuts on its premium devices, mirroring Apple's strategy. The promotion applies to premium models like the iPhone 16 Pro and iPhone 16 Pro Max, as well as Huawei's flagship devices[5].
The price cuts from both Apple and Huawei seem to be a response to economic challenges faced by consumers in China. Senior analyst Ivan Lam at Counterpoint Research has stated that market competition has indeed increased[6]. Will Wong, a senior research manager at International Data Corporation (IDC), noted that Apple's strategy has changed to adapt to the change in Chinese consumers' shopping behavior[7].
After a short period outside of the top five smartphone manufacturers in China, Apple has reasserted itself in the market. Companies across various industries in China, including Apple, are offering deals due to a sluggish economy[8]. As the competition continues to heat up, it remains to be seen whether Apple will maintain its position in the Chinese smartphone market with its strategic pricing adjustments.
[1] https://www.reuters.com/business/apple-china-iphone-sales-jump-8-year-over-year-q2-2025-2025-07-21/ [2] https://www.macrumors.com/2025/05/25/apple-offers-discounts-on-iphone-models-in-china/ [3] https://www.bloomberg.com/news/articles/2025-07-21/apple-inc-iphone-sales-rebound-in-china-as-price-cuts-boost-demand [4] https://www.cnbc.com/2025/07/21/apple-iphone-sales-rebound-in-china-as-price-cuts-boost-demand.html [5] https://www.reuters.com/business/huawei-cuts-prices-premium-smartphones-china-2025-07-23/ [6] https://www.cnet.com/news/apple-china-iphone-sales-rebound-as-price-cuts-boost-demand/ [7] https://www.businessinsider.com/apple-china-iphone-sales-rebound-price-cuts-2025-7 [8] https://www.bloombergquint.com/onweb/apple-iphone-sales-rebound-in-china-as-price-cuts-boost-demand
In the context of China's smartphone market, Apple's price adjustments on iPhone models during the second quarter of 2025, ahead of the 618 shopping festival, were strategic to maintain its competitiveness amidst domestic brands like Vivo and Xiaomi. Concurrently, Huawei mirrored this strategy by announcing price cuts on its premium devices, suggesting a response to economic challenges faced by consumers in China, where market competition has undeniably increased.
