Apple's Humiliation... Price Reduction in China Due to Poor Sales Performance

[Asia Economy Beijing=Special Correspondent Kim Hyunjung] Apple's latest iPhone is being sold in China at a discount of nearly 150,000 won. Despite the worsening US-China relations, the iPhone, which had maintained steady popularity in China, appears to have finally bowed to sluggish sales.

According to local media such as the Shanghai Securities News on the 6th, the latest Apple smartphone model, the iPhone 14 Pro, is currently being sold on Chinese e-commerce platforms like JD.com and Pinduoduo for about 7,199 yuan (approximately 1.33 million won). This is about 800 yuan lower than the official store and website price of 7,999 yuan.

[Image source=Reuters Yonhap News]

The Shanghai Securities News cited an internal document from Apple's official distributor, reporting that all versions of the iPhone 14 Pro and iPhone 14 Pro Max have been discounted by around 700 yuan since the 5th. It emphasized that "this distributor's price promotion must have Apple's official approval" and that it follows headquarters' guidelines.

This price reduction is interpreted as a result of decreased demand and declining profitability. The media outlet explained, "Such a price cut for the iPhone is very rare," adding, "Apple has conducted holiday promotions before, but those were at the level of giving away gifts." It further noted, "There have been almost no cases of price reductions for new products released just a few months ago." It added, "This indicates a shift from supply shortages to demand sluggishness," and stated, "In the past, due to supply chain issues, customers had to wait several weeks after ordering, but now if you order today, you can receive it immediately at offline stores or the next day online."

According to market research firm Canalys, Apple's smartphone shipments last year totaled 287 million units, marking the lowest point in 10 years, with weakened Chinese consumption cited as the reason. Canalys also diagnosed that although Apple's market share in China last year reached a record high of 18%, ranking third locally, the shipment volume in the fourth quarter, the peak sales season, declined, impacting performance.