Was interested to read reports coming from news agency Reuters that several Chinese online retailers have been offered discounts on Apple Inc’s iPhone 11.
The drop in price comes as the company braces for an uncertain year for the smartphone industry, as the spread of the COVID-19 pandemic dampens demand while its Chinese rivals rush out their latest and greatest 5G models.
The online store for Suning, a popular Chinese electronics vendor, offers the 64GB version of the iPhone 11 for 4999 yuan (approximately $707), a discount of 500 yuan from the price listed on Apple’s official China website. The 64GB version of the iPhone 11 Pro Max, meanwhile, sells for 7499 yuan (approximately $1,061), a discount of 1600 yuan from the price on Apple’s website.
Other e-commerce vendors, including JD.com and Dangdang, as well as several authorised Apple resellers on Tmall, the popular website run by Alibaba Group, offer similar price cuts.
For a time, Apple granted little leeway for its Chinese third-party sellers to lower prices.
But in early 2019, several China-based e-commerce properties dropped prices on number of Apples iPhone models. The cuts arrived as the company faced a weakening in demand in China, in part because of competition from domestic rivals.
Apple’s Tim Cook later said the cuts played a role in helping the company recover sales in China.
The latest round of price cuts comes as Apple prepares for the impact of the coronavirus outbreak.
In February, as the virus peaked in China, Cook warned investors that the company wouldn’t meet its revenue guidance for the coming quarter amid disruption of both the Chinese supply chain and consumer demand there.
Data from CAICT (China Academy of Information and Communications Technology), a branch of the Chinese government, revealed that Apple shipped fewer than 500,000 phones in China that month.
Mo Jia, who tracks the global smartphone industry at R&A business Canalys, stated that although some smartphone brands have seen sales in China recover as the virus subsides in the country, Apple is not yet one of them. He attributes the delayed uptake to Chinese brands’ swift roll-out of 5G devices, as consumers who are ready to purchase new phones want models compatible with the country’s upgraded telecommunications networks.
“Apple only offers 4G phones and they are expensive compared to their counterparts,” Jia said.
The team at Platform Executive hope you have enjoyed the article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Josh Horwitz and the Shanghai newsroom. Editing by Gerry Doyle.