iPhone 15 Sales in China Increasingly Dependent on Promotions
Apple resellers in China are offering discounts on iPhone 15 models by as much as $180, indicating an unusually lengthy drop in demand, reports Bloomberg.
According to the media outlet, Alibaba's Tmall is trying to drive sales of the premium handsets by offering them at less than the roughly $120 discount Apple offered around the same time last year.
The discounts follow Apple's own rare price reductions on its website ahead of the Lunar New Year holiday in February. Apple has since returned to selling its iPhone 15 lineup at original prices.
The promotions indicate Apple's latest iPhone generation is struggling to achieve the same popularity of previous models in China. Apple sales in China dropped 13% to $20.8 billion in the quarter ended December, falling short of the $23.5 billion predicted by analysts.
Strong interest in Android phones with generative AI features are believed to be fueling the trend, which is expected to deepen throughout 2024. "The pressure was mainly coming from other Android vendors as we saw Apple decline by around 10% year-on-year in the month while Huawei grew triple-digits over the same period, IDC analyst Will Wong told Bloomberg.
Apple's next major software update, iOS 18, is expected to include a slew of new AI features, while some AI capabilities are rumored to be exclusive to upcoming iPhone 16 models. But it's unclear how game-changing the features will prove to be, and whether they will arrive in time to revive the slump in iPhone sales.
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