Apple very rarely cuts the price of its current iPhone models which is why it is big news that the price of the iPhone 15 series has been cut by as much as 500 yuan (equivalent to $70) in China which happens to be the world’s largest smartphone market. Per Bloomberg, the discount represents a 5% price cut on the 256GB iPhone 15 Pro Max in mainland China. The discount will run for three days from January 18th to the 21st and is being tied into the start of the Lunar New Year which takes place early next month.

Will Wong, a senior research manager at market research firm IDC, says, “It’s no surprise to see Apple launching price discounts for its latest iPhone 15 series, especially since a similar promotion was seen early last year and it helped to stimulate some demand.” A report released last week by securities firm Jefferies said that iPhone sales in China declined 30% during the first week of 2024.

Last January, Apple cut the price of the iPhone 14 series, then the most up-to-date models, by as much as 800 yuan ($112). That discount followed a tough year for smartphones in China as 285.8 million units were shipped in the country in 2022. That was a decline of 13.2% year-over-year and the first time Chinese smartphone shipments fell under 300 million in a decade. In January 2019, Apple cut the wholesale prices of its 2018 models in an attempt to generate demand for the phones.

The 256GB iPhone 15 Pro Max gets a 500 yuan or $70 discount in China

According to Counterpoint Research, shipments of iPhone models in China have been trending lower since Q4 2022 with Honor and Huawei taking some of Apple’s market share. Huawei’s introduction last August of the Mate 60 flagship series was powered by a 5G chip made in China by the country’s leading foundry, SMIC. Because of U.S. sanctions against Huawei, the phones were the first offered by Huawei with a 5G chip (the 7nm Kirin 9000s) since the Mate 40 line was released in 2020.

That Huawei and China’s leading foundry SMIC were able to build a 5G chip of their own, defying the U.S., set off a wave of nationalism among consumers in China who snapped up the new flagship models instead of buying one of the iPhone 15 series phones. Counterpoint Research senior analyst Ivan Lam says, “Apple’s share is being challenged primarily by Huawei at the premium end of the market but also across the mid-high range in recent months from other Chinese competitors.”