During the 618 shopping festival this year, Apple adopted an unprecedented price reduction strategy in the Chinese market, causing the price of top-end iPhone 15 Pro models to drop to less than 8,000 yuan ($1,106) for the first time. This drastic move has raised questions about whether it is a strategic marketing move or a desperate attempt to boost sales in a declining market.
Record-Breaking Discounts
Among the discounted models, the iPhone 15 Pro sold through official channels is priced at only 6,099 yuan ($843) after the discount, while the iPhone 15 Pro Max has a discount of 2,050 yuan ($283) and is priced at 7,949 yuan ($1,099). This marks the first time that the top-end iPhone models have entered the price range of less than 8,000 yuan. In comparison, the price of the top-end iPhone model during the same period last year was 8,098 yuan ($1,119).
There are predictions that the official price of the iPhone in June may drop to the lowest level of the year. This makes it the best time for consumers to buy an iPhone. This prediction uses the trend of Apple’s price reduction strategy, which has been consistent throughout the year.
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Sales Pressure and Market Share Decline
The reason behind Apple’s drastic price cuts for the iPhone 15 Pro models is the sales pressure it faces in the Chinese market. According to data from market research firm Counterpoint, Apple’s mobile phone sales in the Chinese market fell 19% in the first quarter, and its market share fell from first to third. This significant decline in sales and market share has forced Apple to adopt aggressive price reduction strategies to boost sales.
The implementation of price reduction promotions has successfully attracted consumers’ willingness to buy, with Apple’s shipments in the Chinese market increasing by 52% in April. This significant increase in sales suggests that the price reduction strategy has been effective in reviving sales in the Chinese market.
Conclusion
Apple’s price reduction strategy has been successful in boosting sales in the Chinese market. However, it is quite difficult to tell if this is a long-term marketing strategy or a desperate attempt to salvage declining sales. The decline in sales and market share in the Chinese market is a significant concern for Apple, and it will be interesting to see how the company adapts to this changing landscape.
