Apple (AAPL) is offering significant discounts of up to RMB500 ($68.50) on its latest iPhone models in China, in a bid to counter rising competition from domestic rivals like Huawei. The four-day sale will run from January 4 to 7 and the promotion will apply to several iPhone models and will require specific payment methods such as WeChat Pay or Alipay.
Don't Miss Our New Year's Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
AAPL Will Offer Discounts across iPhone Models
AAPL’s flagship iPhone 16 Pro, originally priced at RMB7,999, and the iPhone 16 Pro Max, starting at RMB9,999, will be eligible for the highest discount of RMB500. Meanwhile, the iPhone 16 and iPhone 16 Plus will receive a price reduction of RMB400.
Additionally, AAPL will offer discounts on older iPhone models in the range of RMB200 to RMB300, in addition to discounts on MacBook laptops, and iPad tablets.
Why Is AAPL Offering Discounts in China?
Apple’s decision to offer discounts comes as consumer spending remains cautious due to China’s slowing economy and deflationary pressures. Consumer inflation reached a five-month low in November.
Simultaneously, local competitors, particularly Huawei, are competing aggressively with AAPL. Since re-entering the premium smartphone market in August 2023 with locally-made chipsets, Huawei has aggressively reduced prices. The company is offering discounts of up to RMB3,000 on high-end devices.
Is Apple a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 19 Buys, eight Holds, and two Sells. Over the past year, AAPL has surged by more than 30%, and the average AAPL price target of $245.28 implies a downside potential of 2% from current levels.
