The significant price cuts highlight the intensifying competition among Chinese online retailers vying for budget-conscious consumers in a slowing domestic economy. These discounts are taking center stage ahead of the highly anticipated annual "618" shopping festival on June 18th, a major online retail event in China.
Checks conducted by Reuters on Wednesday revealed that JD.com is offering the iPhone 16 Pro with 128GB of storage for 5,469 yuan, a significant 2,530 yuan markdown from Apple's official price of 7,999 yuan. Similarly, the iPhone 16 with 256GB storage is listed at 5,469 yuan, reflecting a 1,530 yuan price reduction from its official price of 6,999 yuan, which includes government subsidies.
Alibaba's Tmall marketplace is presenting comparable discounts. The iPhone 16 Pro with 128GB storage is available for 5,499 yuan, representing a 2,500 yuan discount off Apple's official price after applying coupons that incorporate government subsidies.
At this time, Reuters was unable to independently verify whether these discounts are being directly offered by Apple or solely by the e-commerce platforms themselves.
Will Wong, a senior smartphone analyst at IDC, noted that Apple has employed similar price reduction strategies on its latest models in the past to stimulate sales during the "618" festival. "Apple is repeating its sales promotion strategy for the shopping event last year," Wong explained. "It’s cutting prices on iPhone 16 Pro so that it can enjoy China's state subsidies on digital products."
Selective discounting has become a feature of Apple's pricing strategy in China, implemented through both its own promotional activities and independent price adjustments by online platforms and authorized resellers. In January, Apple offered rare discounts of up to 500 yuan on its official website. Over the past years, Chinese e-commerce platforms have also frequently rolled out similar enticing deals.
Neither Apple, JD.com, nor Alibaba immediately responded to requests for comment regarding the current discounts.
Recent market data from IDC indicates a challenging first quarter for Apple in China's smartphone market. The U.S. tech giant's shipments experienced a 9% decline, while domestic competitors Xiaomi and Huawei Technologies reported substantial gains of 40% and 10% respectively. This highlights the increasing pressure Apple faces from local players in this key market.
Smartphones are a key focus of China’s broader consumption stimulus plan, with local governments in major cities, including the capital Beijing, offering subsidies of up to 500 yuan for handsets priced below 6,000 yuan. This government initiative likely plays a role in the deep discounts currently being offered on the iPhone 16 models.