Apple
is offering discounts on some newer models of its iPhone in China. It’s a move that could be evidence of slowing Chinese demand but the effect on the stock might be muted after it launched a similar promotion last year.
Apple
has cut prices on some iPhones, including the latest 15 and 15 Pro models, by up to 500 yuan ($70) in an offer advertised on its Chinese website. The promotion is equivalent to 5% of the cost of some models and will last from Jan. 18-21.
The promotion is linked to the Lunar New Year, which is in February. While Apple often offers Lunar New Year discounts, it’s relatively rare for it to do so for new iPhone models. However, the precedent was set in February last year when Apple merchants in China temporarily cut their prices for iPhone 14 models by up to $115.
Apple’s problems in China have arguably been priced in to the stock after several analysts downgraded their ratings on the company in recent weeks, largely citing more sluggish expectations for iPhone sales in China and elsewhere.
Apple shares closed at $185.92 last Friday, leaving them down 3.4% for the year so far. Its market value fell below that of
Microsoft
last week, meaning Apple ceded its spot as the stock market’s most valued company for the first time in more than 500 days.
Apple’s September-quarter revenue in China dropped 2.5% to $15.1 billion. However, it set a quarterly record for iPhone revenue from the Chinese mainland and its quarterly revenue from Greater China grew in constant currencies, with the decline being blamed on weaker sales of Mac personal computers and iPad tablets.
Apple will report its December-quarter earnings on Feb 1.
Write to Adam Clark at [email protected]
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