Apple is hoping to increase sales in China by offering significant discounts during a sales festival.

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Apple is making a strategic move in China by offering significant discounts during a sales festival to boost its sales in the region. The tech giant faces stiff competition from local brands like Huawei, leading to a need for promotions to attract customers.

Chinese e-commerce platforms and Alibaba’s Tmall have started selling select iPhone models at discounts as high as 20% as part of the ongoing 618 shopping festival. For example, the 256-gigabyte iPhone 15 Pro Max is being offered at 7,949 yuan, down from the original 9,999 yuan.

This year’s 618 festival will have two sales periods, from May 20 to May 28 and from May 31 to June 20. Apple is not only offering direct discounts but also trade-in promotions for Chinese buyers, with discounts of up to 6,100 yuan on the iPhone 15 when they trade in iPhone 11 or later models.

An advertisement for the Huawei Pura70 mobile phone is being seen in front of the Apple Store on the pedestrian street of Nanjing Road in Shanghai, China, on May 15, 2024.

Nurphoto | Nurphoto | Getty Images

According to analysts, the discounts offered by Apple during this festival are aimed at both boosting sales and countering Huawei’s resurgence in the market. Apple has faced challenges in China due to the launch of new Huawei smartphone models and a decline in market share.

Despite the challenges in the Chinese market, Apple has managed to maintain investor confidence after a successful earnings report and stock buyback. The company saw a 10% decline in global iPhone sales in the March quarter but expanded its gross profit margin, showing resilience in its services business and signaling revenue growth in the upcoming quarter.

Apple’s efforts to increase its foothold in China through discounts and promotions reflect its determination to stay competitive in one of the world’s largest smartphone markets.

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