- Apple launches iPhone 15 and offers discounts in the Chinese market to combat competition.
- The discount is well-received but raises concerns about brand image and loyal customers.
Apple has offered a rare discount on its latest iPhone model, the iPhone 15, in China as competition in the smartphone market intensifies. The move comes as Apple faces stiff competition from Chinese smartphone brands such as Huawei, Xiaomi and Oppo.
Apple launches iPhone 15 in China with unprecedented discount
The iPhone 15 was released last month and is Apple’s most expensive iPhone yet, starting at $1,499. However, the company has now offered a discount of $200 for customers in China who purchase the phone through its official website or in its retail stores. This is the first time Apple has offered a discount on a new iPhone model in China.
The discount is seen by analysts as a strategic move by Apple to increase its market share in China, which is the world’s largest smartphone market. According to research firm Canalys, Chinese smartphone brands accounted for 78% of the market share in China in the third quarter of 2023, while Apple had only 14%.
Analysts’ perspective: assessing the impact of Apple’s discount strategy
“Apple is facing tough competition from local Chinese brands, which offer high-quality smartphones at lower prices,” said Nicole Peng, Vice President of Mobility at Canalys. “By offering a discount on the iPhone 15, Apple is hoping to attract more customers and increase its market share in China.”
Brand reputation concerns: potential risks of diluting apple’s premium image
However, some experts have raised concerns that the discount could hurt Apple’s reputation as a premium brand. “Apple has always been known for its premium products and premium prices,” said Thomas Husson, Vice President and Principal Analyst at Forrester Research. “By offering a discount on the iPhone 15, Apple risks diluting its brand image and alienating its loyal customer base.”
Consumer response: Chinese customers applaud the discounted iPhone 15
Despite these concerns, the discount has been well-received by Chinese consumers. According to a survey conducted by market research firm JD Power, 67% of Chinese consumers said they would consider purchasing the iPhone 15 with the discount.
Also read:Apple stock price suffers consecutive downgrades, hits 8-week low
Controversial app removal: Apple faces criticism for removing apps used by Hong Kong activists
Apple has also faced criticism in China over its recent decision to remove an app used by pro-democracy protesters in Hong Kong from its App Store. The move was seen by some as Apple caving to pressure from the Chinese government, which has been cracking down on dissent in Hong Kong.
In response to the criticism, Apple CEO Tim Cook defended the decision, saying that the app violated Apple’s guidelines by allowing users to evade law enforcement. “We believe in the fundamental right of free expression, but we also believe that we need to follow the laws of the countries where we operate,” he said.
Overall, Apple’s discount on the iPhone 15 in China is a strategic move aimed at increasing its market share in the country. However, it remains to be seen whether the discount will be enough to counter the stiff competition from local Chinese brands.
