Apple is struggling to launch its artificial intelligence (AI) in China, and iPhone sales are said to have dropped by half last year. Accordingly, it is holding a discount event this year as well, but it is uncertain whether it will be effective.
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▲[Korea Today] Photo unrelated to the article. Source=FREEPIK © Reporter Byun A-rong |
According to the China Academy of Information and Communications Technology (CAICT), shipments of foreign-branded mobile phones in China in November fell 47% year-on-year to 3.04 million units, most of which are believed to be Apple products.
One of the reasons for this sluggish sales is that Apple’s recently released iPhone 16 series is not equipped with enough artificial intelligence (AI) functions. On the other hand, Huawei is showing strength by releasing premium smartphones equipped with its own chipset, with sales in China increasing by 42% in the third quarter of 2024.
In response, Apple is running a promotion in China from January 4 to 7, offering a 500 yuan (about 100,000 won) discount on the iPhone 16 Pro and Pro Max models, and a 400 yuan (about 80,000 won) discount on the iPhone 16 and 16 Plus models. Such discount events are rare for Apple, and appear to be a strategy to regain market share in China.
However, it is uncertain whether this discount strategy will be effective. This is because Chinese consumers are increasingly preferring domestic brands, and consumer sentiment is shrinking due to slowing economic growth. In addition, competition is becoming fiercer as Chinese companies such as Huawei release new products with enhanced AI functions.
Meanwhile, the Chinese government has announced plans to expand consumer subsidies for mobile phones and electronics in response to the economic slowdown, which is expected to benefit Chinese companies such as Huawei and Xiaomi, and pose an additional challenge for Apple.
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