Editor
Celine Low chevron_right
Apple has significantly slashed iPhone prices in China by up to 33%, aiming to counter aggressive competition from domestic brands like Huawei and Xiaomi. This bold pricing move shows the intense rivalry in China’s smartphone market and could have ripple effects on pricing and demand in other Asian markets — including Malaysia.
Big Discounts For iPhones
Despite not officially announcing price cuts, major Chinese e-commerce platforms like JD.com and Tmall are offering substantial discounts on iPhones.
According to South China Morning Post, the iPhone 16 Pro is now available for around 5,999 yuan (about RM3570), a whopping 31% less than the official price. Moreover, Reuters found another platform, JD.com, selling the the iPhone 16 Pro with storage of 128GB at a discount of 2,530 yuan (about RM1505.80).
This is largely due to the resurgence of Huawei and Xiaomi, fuelled by Chinese government subsidies aimed at boosting local brands and the economy. These subsidies, offering up to 500 yuan (approximately 297.60) for smartphones under 6,000 yuan (approximately RM3571), have made local brands even more competitive.
Apple Feels The Pressure
This seems to be a strategy to boost sales at a time when Apple's first-quarter shipments in China, its second-largest market, have experienced a decline.
According to Reuters, Chinese shipments of foreign-branded cellphones, including Apple's iPhones, dropped significantly by 49.6% year-on-year in March.
The price reductions are coincidentally in time with China's major "618" shopping festival, which takes on 18 June.
What Does This Mean for Malaysia?
The price wars in China could have several implications for the Malaysian smartphone market:
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Potential Price Drops: If Apple feels continued pressure in the region, it might consider similar pricing strategies in other markets like Malaysia to stay competitive.
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Increased Competition: The success of Huawei and Xiaomi in China could encourage them to further expand their presence in Malaysia, offering consumers more choices.
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Shifting Consumer Preferences: Malaysian consumers might be more inclined to consider alternative brands if iPhones remain relatively expensive.
While it's not guaranteed that we'll see the exact same price cuts in Malaysia, the developments in China are worth watching closely. It could lead to a more competitive market, offering Malaysian consumers more choices and potentially better deals.
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News sources: South China Morning Post, Reuters
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