Companies

Apple Discounts iPhones in China to Compete with Huawei

Published January 2, 2025

Apple is making headlines by offering discounts on its iPhones to entice users in China, facing stiff competition from local manufacturer Huawei.

Discounts Offered

The iPhone maker announced that customers can receive a discount of up to 500 yuan, which is approximately $68.50, on its latest iPhone models. This promotion is applicable when using "eligible payment methods" as stated on the Apple website. The higher discount of 500 yuan applies to the iPhone 16 Pro and iPhone 16 Pro Max, while the iPhone 16 and iPhone 16 Plus will see a reduction of 400 yuan. This discount initiative will run from January 4 to January 7.

Performance in the Chinese Market

According to the International Data Corporation (IDC), Apple successfully re-entered the top five smartphone manufacturers in China last year. By the third quarter of the year, Apple captured a significant 15.6% market share, securing second place after previously falling to sixth in the preceding quarter.

Competition from Huawei

Huawei, once the largest smartphone producer globally, is also adapting to this competitive landscape. After facing challenges due to U.S. sanctions in 2020, the company is cutting prices on its premium smartphones by up to 20% to rival Apple’s offerings in China. In addition, Huawei has introduced its innovative Mate XT smartphone, which features a unique 10-inch tri-fold display, making its debut just hours after the launch of the iPhone 16 in September.

Recent Growth Trends

IDC has noted that Huawei is experiencing a remarkable recovery, achieving four consecutive quarters of at least double-digit growth. The introduction of new technology, such as the world’s first tri-foldable phone, is likely to accelerate the development of the foldable phone market. Alongside Huawei, other Chinese smartphone manufacturers have reported double-digit growth, contributing to an 8.9% year-over-year increase in smartphone shipments in China as reported in the second quarter.

Apple, Huawei, Discounts