
Audio By Carbonatix
Two major Chinese retailers have slashed prices on Apple Inc.’s latest iPhones, an unusual move that underscores how demand for the marquee device is flagging in the world’s largest smartphone market.
Top chain Suning Commerce Group Ltd. promoted a 128GB iPhone XR for 5,799 yuan ($860) on Friday, 17 percent cheaper than the price on Apple’s own website. JD.com, China’s largest online electronics retailer, was offering the same model for 6,099 yuan, which is 900 yuan cheaper than the official price.
Apple discourages retailers from discounting iPhones and such reductions are rare so soon after their release, with the lower prices coming just four months after the models were unveiled.
The price cuts come about a week after Apple lowered its revenue outlook for the first time in almost two decades, citing weaker demand in China. That in turn stoked concerns not just about the health of the consumer electronics market but also a faster-than-expected slowdown of the world’s second-largest economy.
“Such a huge price cut at this time, a non-shopping festival period, seems unusual,” said Jia Mo, an analyst with Canalys. The price cuts likely came from distributors of Apple products, which Canalys estimates sells a quarter of all iPhones in China. “It could be the distributors want to promote their iPhone stock during the Chinese New Year shopping season.”
An Apple spokeswoman didn’t respond to requests for comment.
Apple’s iPhones have failed to excite Chinese consumers because of their lofty price tags and stiff competition from the likes of Huawei Technologies Co. The iPhone XR in particular, the cheapest of Apple’s latest line-up, is thought to have fallen flat with consumers.
“Cutting the price of devices so soon could hurt Apple’s premium brand image,” Jia said. “It would also hurt core users that just bought these devices at the original prices.”
Latest Stories
-
Traders, Freight forwarders push back against planned cargo tracking policy
49 seconds -
BoG Governor highlights tough trade-offs in monetary policy decisions
3 minutes -
Trade Ministry intervenes to stop sachet water price increase, talks set for Wednesday
9 minutes -
Onion supply to Ghana threatened as trucks held up in transit dispute
16 minutes -
President Mahama to attend One Health Summit in France, hold bilateral talks with Macron
53 minutes -
Mahama endorses ADB at Kwahu Business Summit
2 hours -
Every gram will be tracked – Gold Board unveils traceability push to deal with illegally-mined gold
2 hours -
Analysis: Why the Bank of Ghana sold half its gold reserves
2 hours -
Buy wrong gold, face prosecution – Gold Board CEO cracks down on rogue dealers
3 hours -
Africa pushes integrated health agenda ahead of One Health Summit in Lyon
3 hours -
We own the strategy, its not head office decision – GCB MD positions bank as engine of Ghana’s economy
3 hours -
No more waiting for head office – GCB boss pushes Ghana-first banking
4 hours -
Mahama lauds Julius Debrah for shaping Kwahu Business Forum
4 hours -
Why actors beg in difficulty – Patience Ozokwor on Nollywood financial struggles
4 hours -
Any man who apologises to woman deserves to suffer – Brymo
4 hours