According to a Reuters report, tech giant Apple (NASDAQ:AAPL) is offering a 5% discount to boost its iPhone sales in China. The company is offering this discount as a Lunar New Year promotion from January 18 to January 21. This promotion is Apple’s attempt to counter the sluggish sales of its iPhone 15 as it faces strong rivalry from local brands like Huawei and Xiaomi.
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The report cited Jeffries analysts, who have stated that iPhone sales in China have fallen 30% year-over-year in the first week of 2024, and analysts expect the competitive landscape to get more difficult this year.
This move is a surprise as Apple did not increase prices after the launch of the iPhone 15 in September. Online platforms in China, like Pinduoduo (NASDAQ:PDD), have cut prices by up to 16% for the iPhone 15 and iPhone 15 Pro since the beginning of this year.
Is AAPL a Buy?
Analysts remain cautiously optimistic about AAPL stock with a Moderate Buy consensus rating based on 23 Buys, nine Holds, and one Sell. Over the past year, AAPL stock has soared by more than 35%, and the average AAPL price target of $203.35 implies an upside potential of 9.4% at current levels.
