As smartphone sales slow down, third-party retailers are offering comprehensive price reductions of up to a thousand yuan for Apple's iPhone 15 series phones.
The price reduction this time is on the eve of Women's Day on March 8th. A reporter from First Financial News found that at least four new Apple phones, including the iPhone 15 and iPhone 15 Pro series, have been fully reduced in price, ranging from a few hundred to a thousand yuan. The basic iPhone 15 model with the greatest price reduction is priced 1300 to 1400 yuan lower than the Apple official website. The best-selling iPhone 15 Pro Max model has a maximum price reduction of over 1000 yuan for a specific version.
The iPhone 15 series has only been launched for 5 months, and the price reductions on multiple platforms such as JD.com, Tmall, and Pinduoduo have exceeded market expectations. As early as a month after the launch of the iPhone 15 series, these platforms had already offered similar discounts, but the discount was limited at that time.
The increased promotion efforts in e-commerce are also related to Apple's official price reduction measures. Last month, Apple launched a rare iPhone discount of up to 500 yuan on its official website, which was considered an unusual move by the market and demonstrated Apple's attitude.
Analysts say that in the past, Apple occasionally allowed Chinese suppliers to offer discounts to stimulate demand. But in the future, Apple's control over channel price reductions will become increasingly limited. This also reflects the fierce competitive environment that Apple is facing in China.
"The first half of the year is usually the seasonal off-season for Apple iPhones, but Apple iPhone sales in China have indeed passed their peak," said Zhu Jiatao, senior analyst at research firm Canalys, to First Financial reporters
A reporter from First Financial News found that in February last year, after the release of the Apple iPhone 14 series, some third-party platforms also significantly reduced the prices of high-end models, including the iPhone 14 Pro, by about 10% at that time.
Will the significant price adjustments in the short term after going public shake Apple's high price strategy? Regarding this, Zhu Jiatao believes that Apple may not proactively lower the prices of high-end Pro series models, but the price competitiveness of the basic iPhone does face challenges.
"In recent years, the Pro series has been one of Apple's best-selling products, and Apple will continue to promote it in this market. However, it is true that the basic version of the iPhone is facing greater challenges from competitors, and the competitiveness of Android flagship products is becoming stronger and stronger." Zhu Jiatao told First Financial reporters.
In the past few years, Apple has continuously raised the price of high-end models by widening the technological gap between its flagship high-end model iPhone Pro and the entry-level iPhone, which has also led to a continuous increase in Apple's average selling price (ASP) for a single device. In 2017, Apple's top iPhone model (iPhone X with 256 GB storage capacity) was priced at $1150, and in 2022, an iPhone 14 Pro Max model with 1TB storage capacity was priced at $1600, a premium of nearly 40%.
Last year, when analysts questioned whether this price increase was sustainable, Apple CEO Cook told investors, "Consumers are willing to spend more money on what they think is the best product." He hinted that Apple will spare no effort in launching more luxury models with new features.
However, in recent years, Apple has not demonstrated strong innovative products in the high-end computer field. Canalys wrote in a report released earlier this year, "In the new year, Apple must seek new market growth points and ecosystem advantages to revive the iPhone business."
Market research firm IDC believes that the main factor driving Apple's sales growth will be the growth trend in demand for high-end devices. The agency also predicts that Apple may further leverage measures such as trade in discounts and interest free installment payments to boost sales.
Whether Apple will follow Samsung and other manufacturers to launch foldable phones is another hot topic in the market. Previously, Apple had applied for multiple technology patents related to foldable screens. If Apple joins this "foldable screen battle", it may become a new selling point that ignites the market.
Last year, Apple won the competition with Samsung. According to reports from Canalys and IDC, Apple's smartphone sales surpassed Samsung for the first time in 2023, ranking first globally. According to Canalys analysis data, Apple's market share in the high-end smartphone market in China is stable at over 80% for over $800.
But whether Apple can maintain its position as the sales champion this year is still full of uncertainty, especially whether China's sales can remain strong, which poses great challenges. According to an analyst report from investment bank Jefferies, iPhone sales in China decreased by 30% in the first week of 2024. Jeffrey also predicts that Apple's iPhone sales in China will decrease by 3% year-on-year in 2023.
At the beginning of this year, Barclays Bank downgraded Apple's stock rating, predicting multiple risks that Apple will face in the future. In addition to sluggish hardware sales, other risks include the possibility of Apple's services business facing stricter regulatory review challenges.
The performance of Apple's stock price this year has also been very lackluster, not driven by this round of artificial intelligence boom. Compared to the strong rise of other tech giants, Apple's stock price has fallen by nearly 6% so far this year.
Cook said at Apple's annual shareholder meeting on Wednesday that the company will release specific artificial intelligence plans later this year, which are expected to reshape all of Apple's products, including the iPhone.