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Apple Lowers Prices of iPhones, iPads, Macs, AirPods, and More in China as VAT Cut Takes Effect

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Apple has lowered the prices of several products in China this week, including the latest iPhones, iPads, and AirPods.

appleproductlineup.jpg

As noted by CNBC, the iPhone XR now starts at 6199 RMB on Apple's online store in China, nearly five percent lower than its previous 6499 RMB price tag. The higher-end iPhone XS and iPhone XS Max models each received a 500 RMB price cut as well and now start at 8,199 RMB and 9,099 RMB respectively.

Likewise, the second-generation AirPods with the standard Lightning charging case now start at 1,246 RMB, down slightly from 1,279 RMB, and the 11-inch iPad Pro has been discounted to 6,331 RMB from 6,499 RMB previously.

The price cuts appear to be due in part to a reduction in China's value-added tax (VAT) that went into effect today to help boost the economy there, but regardless of the reason, any price cut could be good news for Apple as it seeks to bolster sales in China.

Last quarter, Apple issued its first revenue warning in 16 years due to "fewer iPhone upgrades" than it anticipated and "significantly greater" than expected economic weakness in the Greater China region. Apple already discounted iPhone prices at third-party resellers in China to improve results.

Article Link: Apple Lowers Prices of iPhones, iPads, Macs, AirPods, and More in China as VAT Cut Takes Effect
 
Article Link
https://www.macrumors.com/2019/04/01/apple-price-cut-vat-china/
They are doing it where it needs to be done. China was a poor performer among a lot of strong performances last quarter.

Fix China and Apple is right back on track.
 
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That is not a serious cut. Apple does not think it is in a crisis. Well, it might become a catastrophe by the end of the year. China is fast evolving market out of Apple's last year plan. Take it seriously, Apple. Make a 20-25% price cut and hold your market share. Samsung is dying there. Did you not see that?
 
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I don’t know how much effect this will have on China and if it will provoke buyers still to purchase Apples prices over there, but at minimum, at least it shows Apple is recognizing that they do need to make _some_ changes with their prices given China was on the decline in Apples last quarter.
 
Apple lowers prices in China?
iPhone XR starting at $924 and the iPhone XS starting at $1222 isn’t what I would call apple “lowering” prices.

I’m actually surprised anyone buys any iPhones in China considering the cheaper android alternatives, must be the Apple Watch and the AirPods.
 
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People who want and can afford iPhones will likely buy the XS/XS Max. That's why Apple only cut the prices on the XR to drive up demand from people who are on the fence.

Otherwise, this is just a price adjustment due to the lower VAT since the prices Apple list in China are inclusive of VAT.

That article is a bit misleading as if Apple is actually dropped prices, they are not; they are just lowering the amount of VAT that needed to be collected. The base price of the products are all still the same.
 
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busuan said:
That is not a serious cut. Apple does not think it is in a crisis. Well, it might become a catastrophe by the end of the year. China is fast evolving market out of Apple's last year plan. Take it seriously, Apple. Make a 20-25% price cut and hold your market share. Samsung is dying there. Did you not see that?
Click to expand...
Apple knows the iPhone can't compete in China whatever they will price it. In China you can buy better for half the price of the iPhones. Wait for the Chinese brands to get a foothold on american soil. All new iPhones should have come with dual camera and OLED already and with better RAM options to make them somewhat competitive again. But Apple is only focusing on profit margins so I'm saving some hope for iOS 13 to leapfrog away from Android. If not... iPhone is done.
 
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Apple isn't officially lowering its prices in China. It's China lowering the VAT on these consumer electronics, and Apple is one of the first to react as they have a very transparent pricing structure.
Unofficially, Apple is intentionally being blind on its resellers in China selling the products on considerable discounts for quite some time now, which wasn't the case in the previous years.
 
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magicschoolbus said:
Chinese buy Huawei phones - plain and simple. They really do not want western companies in their markets (in this space) and feel companies like Huawei are a symbol of national pride - think GM in the 50's, 60's, 70's, 80's..
Click to expand...

Well that plus the fact that the average salary in China for a white collar worker in 2018 was 7629 RMB per month, about $1136 USD. Even in Bejing where the highest average monthly pay is that is about 10,200 RMB or $1520 USD.

The overall average probably much lower across all careers.

Meanwhile, the average US salary is about $56,000, or $4,666 per month; over 4 times more for the averages. Probably more if you did a direct country to country average.

Money is a big issue. Asking someone to buy a phone that is 10% of their yearly salary is a tough proposition. It would be like expecting someone in the US to buy a $1099 XS Max with $12,000 per year pre-tax income
 
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