iPhone 15 Sales in China Increasingly Dependent on Promotions

[HJM.NL]

It’s common sense of the Chinese people. There are lots of vendors with cheaper better spec phones. Huawei xiaomi and lots of lesser known brands are offering much more bang for the buck. For around $ 300,- you have a phone with similar specifications as the latest iPhone 15 pro. Apple has to step up a bit (much) to recapture lost market share. I’m afraid Apple already lost China. It’s like the electrification of cars… only Tesla is able to compete for now, the rest will go bankrupt or join a Chinese manufacturer to survive (stellantis, VW).

 

[HJM.NL]

You hit the nail on the head. It is primarily an economic problem. They are basically in deep recession due to the real estate problem, but you don't see the recession on the numbers because the government reported numbers are very inflated. But you should expect all luxury good sales to drop hard this year over there - handbags, perfumes, expensive cars.

It isn't really economic nationalism (that would have started long ago), the high prices of iPhone are definitely minor contributors but it isn't like charging 20% less will make that much of a difference (still too high to be considered budget). Simply, people with money will buy what they like, and people without money will buy replacements or hold out.

It’s not only the economics. Lot’s of Chinese brands are able to surpass Apple in specifications and price. Why pay $ 1000 for an iPhone 15 pro when you can get similar or better phones for $ 300. Apple has to step up with hard- and software to stay relevant.

 

[deaglecat]

Chinese phones by Xiaomi, Oppo and Huawei/Honor continue to innovate e.g. foldables, super fast charging, value for money at a rate that Apple seems unable to compete.

I don’t expect that to change anytime soon. Apple is talent limited (like many other companies) and Vision pro is a fairly significant drain engineering resource.

 

[SactoGuy18]

I think this is happening due to the increasingly bad Chinese economy. Even locally-made phones are selling at a disappointing rate.

 

[JPack]

The vast majority of consumers are not really enthusiasts… it probably has more to do with the value propositiom and buying native companies tech.

Why buy such and such if its possible, though not likely, that the company you buy from could be pushed out the market in a trade war. And then where do you stand on support.

Customers in China are. They care about specs much more because there is so much competition.

Americans can be blind because there's effectively only three choices for smartphones in the U.S. It's either Apple, Samsung, or Google. But there are several dozens of options in China. Consumers have to be spec considerate.

 

[RumorChaser]

It’s not only the economics. Lot’s of Chinese brands are able to surpass Apple in specifications and price. Why pay $ 1000 for an iPhone 15 pro when you can get similar or better phones for $ 300. Apple has to step up with hard- and software to stay relevant.

Like someone said upthread, you're giving too much consideration to so called enthusiasts' opinion on specs. Most people don't understand the specifications. (As someone more informed than the mass public, I agree Apple is very greedy about specs, for example RAM on Mac, but unfortunately people are not like you and I) Apple's main proposition is the popular perceptions of its brand. It is high end, and thought to be simple to use. This has not been challenged.

 

[webkit]

Prices in China are about 20% less even before taxes. For example, an iPhone 15 512GB in China is $1,049 tax inclusive while it’s $1,199 in U.S. before taxes.

Apple China website prices, however, can be very similar to U.S. prices. Using your 512GB iPhone 15 example, the pre-VAT retail price is around ¥7,957 or $1,107 USD compared to a pre-sale tax price of $1,129 for same phone in U.S. Practically the same price.

 

[HJM.NL]

Like someone said upthread, you're giving too much consideration to so called enthusiasts' opinion on specs. Most people don't understand the specifications. (As someone more informed than the mass public, I agree Apple is very greedy about specs, for example RAM on Mac, but unfortunately people are not like you and I) Apple's main proposition is the popular perceptions of its brand. It is high end, and thought to be simple to use. This has not been challenged.

I understand completely. But if you can buy a phone with better picture quality from the camera for around $ 300 instead of $ 1000. The choice is made fast. You pay a lot for just the brand Apple. In China you’ve much more to choose from for far less. They all copy the ecosystem Apple was famous about. Apple has to reinvent itself with better offerings if they want to stay relevant in China. You say few people care about specs…. Well why buy a $ 1000 phone if you don’t care about specs to begin with?

 

[JPack]

Apple China website prices, however, can be very similar to U.S. prices. Using your 512GB iPhone 15 example, the pre-VAT retail price is around ¥7,957 or $1,107 USD compared to a pre-sale tax price of $1,129 for same phone in U.S. Practically the same price.

Hardly anybody buys from Apple online because the larger equivalents of Amazon like Tmall, PDD, Taobao, etc. existed for years and control the consumer channel. Apple has an official store on Tmall for example. While Apple doesn’t discount official Apple.com.cn list prices, their actual prices are much lower. These prices are inclusive of a 13% VAT.

For example, the iPhone 15 512GB is effectively $935 before taxes in China.

 

[j26]

I think this is happening due to the increasingly bad Chinese economy. Even locally-made phones are selling at a disappointing rate.

Statista expects over 5.5% growth per annum from 2024 to 2028. It's not a shrinking market.

 

[deaglecat]

Apple actually discounts phones routinely …just not when selling direct. When Amazon, Costco, Best Buy run Apple product discounts they don’t fund that discount solely out of their own reseller margin.

Apple discounts at wholesale level if it needs to shift inventory.

 

[Fuzzball84]

Customers in China are. They care about specs much more because there is so much competition.

Americans can be blind because there's effectively only three choices for smartphones in the U.S. It's either Apple, Samsung, or Google. But there are several dozens of options in China. Consumers have to be spec considerate.

Raw specs only get you so far, quality, reliability, build, design.... these all factor in too. Although it is true what you say about some looking at the specs... but a lot of middle class and wealthier Chinese just want a high end phone.

Im not American, but I don't think Americans can be blind.. or at the most a very very small minority. Most just want a decent phone also, and it just so happens that the highest spec in terms of processor and RAM, storage does not get you the best phone experience.

Lot of people actually buy a brand because they trust it, and for Americans, its those three brands because American and allied countries designed them. Likewise for China...

 

[webkit]

Customers in China are. They care about specs much more because there is so much competition.

Americans can be blind because there's effectively only three choices for smartphones in the U.S. It's either Apple, Samsung, or Google. But there are several dozens of options in China. Consumers have to be spec considerate.

At least four choices. I would definitely throw Motorola in there too.

Others like BLU, Nokia, OnePlus, TCL, etc. don't seem to get much sales here.

Hardly anybody buys from Apple online because the larger equivalents of Amazon like Tmall, PDD, Taobao, etc. existed for years and control the consumer channel. Apple has an official store on Tmall for example. While Apple doesn’t discount official Apple.com.cn list prices, their actual prices are much lower. These prices are inclusive of a 13% VAT.

For example, the iPhone 15 512GB is effectively $935 before taxes in China.

Do carriers in China offer "deals" too? For example, in the U.S. you can get a new 128GB iPhone 15 Plus for around $395 through AT&T. Well below the Apple retail price of $929. Of course, it requires a long-term commitment (discount is spread over 36 months) on a pricey (at least $65/month) plan.

 

[webkit]

Apple actually discounts phones routinely …just not when selling direct. When Amazon, Costco, Best Buy run Apple product discounts they don’t fund that discount solely out of their own reseller margin.

Apple discounts at wholesale level if it needs to shift inventory.

U.S. iPhone discounts tend to be fairly small unless tied to a carrier commitment, however.

 

[CrysisDeu]

 

[MAlbi]

Pressure brings innovation. If pressure can lower prices, well then I, less than average customer say - let them have it.

 

[JPack]

Do carriers in China offer "deals" too? For example, in the U.S. you can get a new 128GB iPhone 15 Plus for around $395 through AT&T. Well below the Apple retail price of $929. Of course, it requires a long-term commitment (discount is spread over 36 months) on a pricey (at least $65/month) plan.

Yes, similar deals as well. But even if you don't buy via contract and just want a contract-free unlocked phone, the carrier will sell for less than Apple.

For example, iPhone 15 Plus 128GB at China Unicom is ¥6299 vs. ¥6999 at Apple. So very few people buy from Apple direct, unless they want a phone on day one in September.

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[deaglecat]

U.S. iPhone discounts tend to be fairly small unless tied to a carrier commitment, however.

Interesting…in the UK can currently buy most iphones e.g, 14 or 15 at around £100 discount with choice of reputable sellers e.g Amazon, Costco, John Lewis. No contract…just a discounted phone.

 

[CEmajr]

Why doesn’t America have any deals like this all we get is monthly crap from different carriers that brainwash people. I rather pay for my iPhone instead of paying monthly. Apple is basically Toyota it’s the same design each year with nothing different.

The carrier financing of phones in the US keeps the out the door price of iPhones low enough so that Apple can still sell lots of them at high prices. The vast majority of US consumers only care about how much they have to pay upfront to get the phone in hand.

 

[urbanman2004]

Thought the CCP (Chinese gov't) was on the verge to banning iPhones outright...

 

[dampfnudel]

Discounts will be necessary again with the iPhone 16 lineup unless Apple gives Chinese consumers a compelling reason to pay full price for the iPhone 16 or 16 Pro. In other words, a redesign of some sort and not some new AI features. Discounts may become necessary outside of China if Apple phones in another mildly upgraded iPhone Pro that looks like the previous three generations.

 

[dampfnudel]

Thought the CCP (Chinese gov't) was on the verge to banning iPhones outright...

I guess the Chinese government doesn’t want to risk Apple pulling out of China completely like Samsung did with their phones. I doubt Apple would pull out, but Tim might be furious enough if China banned iPhone sales that he would start to slowly pull out with some products.

 

[boswald]

I don’t buy the “lack of AI” excuse. I still believe money is tight and the iPhone just isn’t a necessary expense. People are hurting financially the world over, so counting your blessings and making do with what you have is paramount.

 

[svish]

Looks like there won't be any further price hike in the near future. Good!

 

[SmugMaverick]

Sounds like the Chinese see past the delusion that we fellow Americans believe that iPhones are a premium device that command a premium price!

Jfc there are members here that continue to compare their iPhones to a Ferrari and androids to a Honda.

Iphone is more like a Honda with lipstick. 💄

Been saying this in a lot of threads about the EU rules when some American users post about pulling out of the EU and how they'll beg Apple to come back.

The delusion is huge, people will happily buy Android devices because they don't care about iMessage or peer pressure over a phone in the EU.

Apples marketing in the US has created this delusion.

China don't need Apple at all.