Apple has launched a substantial discount campaign on its official Tmall site in China, offering price reductions of up to 2,300 yuan ($318) on select iPhone models.
This move is part of a broader strategy by the U.S. tech giant to fortify its position in the high-end smartphone market, where it faces mounting competition from local rivals such as Huawei.
Running from May 20 to May 28, the latest discount campaign significantly surpasses Apple’s previous efforts in February. The highest discount during the February promotion was 1,150 yuan, whereas this time, discounts reached up to 2,300 yuan. The most considerable reduction is applied to the 1TB iPhone 15 Pro Max model, with other models also benefiting from substantial price cuts, including a 1,400 yuan discount on the 128GB version of the base iPhone 15 model, according to Reuters’ checks on Monday.
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Apple’s aggressive discounting is complemented by a range of other strategic efforts to stay competitive in the Chinese market. The company has been tailoring its marketing campaigns to resonate with Chinese consumers, focusing on cultural events and local festivals to build a stronger brand connection. Additionally, Apple is expanding its retail presence by opening new stores in key cities, enhancing brand visibility, and providing more touchpoints for consumers to experience its products firsthand.
Moreover, the Cupertino giant is strengthening its after-sales service network in China, offering more accessible and comprehensive support to its customers. This includes extending warranties and providing quicker repair services, improving customer satisfaction and loyalty.
The company has also been investing in the local tech ecosystem, partnering with Chinese developers to create apps and services tailored to the Chinese market, which enriches the user experience and fosters a loyal customer base.
Apple’s competitive pressures are amplified by Huawei’s resilience in the face of U.S. sanctions. Despite facing significant restrictions that limit its access to crucial technologies and components, Huawei has continued to innovate and capture market share. The Chinese tech giant has defied the odds by launching new high-end smartphones, such as the Pura 70 series and the Mate 60, boasting advanced features and competitive pricing.
Huawei has also invested heavily in developing its own semiconductor technologies to reduce reliance on foreign suppliers and ensure a steady supply of critical components. Furthermore, the telecom vendor has forged strategic partnerships with local suppliers and tech firms to boost its supply chain and enhance its product offerings.
Beyond smartphones, Huawei has diversified its product range to include laptops, wearables, and smart home devices, creating additional revenue streams and mitigating risks.
Apple’s previous discounting campaign in February proved effective in counteracting a sales slowdown in China. Following the promotion, Apple’s shipments in China increased by 12% in March, according to Reuters’ calculations based on data from the China Academy of Information and Communications Technology (CAICT). This marked a significant rebound from the first two months of 2024, during which Apple experienced a 37% slump in sales.
The current discount initiative aims to sustain this positive momentum and further bolster Apple’s market position amid growing challenges. By offering substantial discounts, Apple not only attracts price-sensitive consumers but also reinforces its competitive stance against formidable local competitors like Huawei.