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iPhone 16 Lineup Sees $350 Price Drop in China as Sales Decline

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The iPhone 16 lineup is now being sold at discounts of over $350 on major Chinese e-commerce platforms, as the company and its retail partners move to stimulate demand in the face of declining sales and intensifying competition in the world's biggest smartphone market (via Reuters).

iphone-16-lineup.jpg

JD.com and Alibaba's Tmall marketplace have introduced significant markdowns on Apple's new devices ahead of China's annual mid-year "618" shopping festival, which runs from June 1 to June 18. JD.com is currently offering the iPhone 16 Pro with 128GB of storage for 5,469 yuan, down from the official Apple China price of 7,999 yuan — a 2,530 yuan reduction equivalent to approximately $351. Tmall is offering the same model at 5,499 yuan, representing a 2,500 yuan discount when applying platform-specific coupons, some of which include Chinese government subsidies.

While Apple has not openly confirmed its role in the price reductions, the company has employed similar tactics in previous years, particularly around major shopping festivals. In January, Apple issued limited-time discounts of up to 500 yuan on its official website in China.

Smartphones priced below 6,000 yuan qualify for government subsidies of up to 500 yuan, depending on the city or province. These subsidies are part of a national consumption initiative aimed at boosting sales of electronics and other goods amid slowing economic growth. Historically, Apple devices were priced above the subsidy threshold, but the recent discounting has brought certain iPhone 16 models under the limit, making them eligible for the incentives.

Apple's iPhone shipments in China reportedly declined 9% year-over-year in the first quarter of 2025. A separate report placed the year-over-year decline at 49.6%, falling from 3.75 million units in the first quarter of 2024 to 1.89 million in the first quarter of 2025. During the same period, Chinese competitors experienced significant growth, with Xiaomi seeing a 40% increase in shipments and Huawei seeing a 10% increase.

Apple continues to list devices at full price on its own platforms. The tactic of reducing prices with third-party retailers allows the company to offer region-specific price adjustments without undermining its premium positioning globally.

Article Link: iPhone 16 Lineup Sees $350 Price Drop in China as Sales Decline
 
Article Link
https://www.macrumors.com/2025/05/15/iphone-16-sees-price-drop-in-china/
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Reactions: antiprotest
Western brands have relied on the Chinese market as cash cows for a while now (high end electronics, cars, fashion), seeming to rely on the cachet of being seen as more technologically advanced, luxurious or a status symbol to justify the increased prices over the domestic brands. Unfortunately for a lot of companies, the Chinese have developed their own advanced and high end brands that can undercut the Western brands on price are starting to eat into marketshare. See the smartphone market and car/EV market for good examples of this. It seems like a lot of Western brands and their investors are in a bit of denial about the issue.
 
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Living the Dream said:
The iPhone is beyond stale at this point. I look forward to the cliche “good morning here’s our latest iPhone built from the ground up with an upgraded 48 MP camera. “

Apple, do more, do better.
Click to expand...

Apple have relied on the coolness/status of owning an iPhone in China. Featurewise, a lot of Chinese brands have caught up and surpassed Apple at a lower price (and inducing a sense of national pride). The quality of all the components may not be as high or cutting edge, but on things like AI, SiC batteries, charging speeds and foldables they are way ahead.
 
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The question is whether this tactic will be enough to slow the momentum of local giants like Xiaomi and Huawei and actually reverse the sharp decline in iPhone sales.
 
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MacRumors said:
Apple continues to list devices at full price on its own platforms. The tactic of reducing prices with third-party retailers allows the company to offer region-specific price adjustments without undermining its premium positioning globally.
Click to expand...
So funny, because the discount is done trought a retailer they expect we believe in the "premium positioning" to be the same?

No, the price is adjusted locally based on supply/demand model.

Their PR department should stop pushing messages "we are different"
 
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kiranmk2 said:
Western brands have relied on the Chinese market as cash cows for a while now (high end electronics, cars, fashion), seeming to rely on the cachet of being seen as more technologically advanced, luxurious or a status symbol to justify the increased prices over the domestic brands. Unfortunately for a lot of companies, the Chinese have developed their own advanced and high end brands that can undercut the Western brands on price are starting to eat into marketshare. See the smartphone market and car/EV market for good examples of this. It seems like a lot of Western brands and their investors are in a bit of denial about the issue.
Click to expand...

It's tough for Apple to fairly compete in a market where the government *strongly encourages* its citizens to purchase and use Chinese mobile phones.

And mandates that government employees only use Chinese phones.
 
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citysnaps said:
It's tough for Apple to fairly compete in a market where the government *strongly encourages* its citizens to purchase and use Chinese mobile phones.
Click to expand...

Government incentives aren't helping Apple, but neither is their abysmal support for non-English languages in any new feature they roll out. Of course Chinese people are going to go with Chinese phones now that they're basically as good as iPhones, they're literally built for them. The Chinese market is an afterthought to Apple. Not saying that's right or wrong, it's just true. They're an American company who gets most of their money from Americans.

And mandates that government employees only use Chinese phones.
Click to expand...

Completely reasonable mandate. How many Chinese phones do you think get deployed by the US government to federal workers?
 
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Yimbaz said:
Government incentives aren't helping Apple, but neither is their abysmal support for non-English languages in any new feature they roll out. Of course Chinese people are going to go with Chinese phones now that they're basically as good as iPhones, they're literally built for them. The Chinese market is an afterthought to Apple. Not saying that's right or wrong, it's just true. They're an American company who gets most of their money from Americans.



Completely reasonable mandate. How many Chinese phones do you think get deployed by the US government to federal workers?
Click to expand...

Spot-on.
 
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MacRumors said:


The iPhone 16 lineup is now being sold at discounts of over $350 on major Chinese e-commerce platforms, as the company and its retail partners move to stimulate demand in the face of declining sales and intensifying competition in the world's biggest smartphone market (via Reuters).

iphone-16-lineup.jpg

JD.com and Alibaba's Tmall marketplace have introduced significant markdowns on Apple's new devices ahead of China's annual mid-year "618" shopping festival, which runs from June 1 to June 18. JD.com is currently offering the iPhone 16 Pro with 128GB of storage for 5,469 yuan, down from the official Apple China price of 7,999 yuan — a 2,530 yuan reduction equivalent to approximately $351. Tmall is offering the same model at 5,499 yuan, representing a 2,500 yuan discount when applying platform-specific coupons, some of which include Chinese government subsidies.

While Apple has not openly confirmed its role in the price reductions, the company has employed similar tactics in previous years, particularly around major shopping festivals. In January, Apple issued limited-time discounts of up to 500 yuan on its official website in China.

Smartphones priced below 6,000 yuan qualify for government subsidies of up to 500 yuan, depending on the city or province. These subsidies are part of a national consumption initiative aimed at boosting sales of electronics and other goods amid slowing economic growth. Historically, Apple devices were priced above the subsidy threshold, but the recent discounting has brought certain iPhone 16 models under the limit, making them eligible for the incentives.

Apple's iPhone shipments in China reportedly declined 9% year-over-year in the first quarter of 2025. A separate report placed the year-over-year decline at 49.6%, falling from 3.75 million units in the first quarter of 2024 to 1.89 million in the first quarter of 2025. During the same period, Chinese competitors experienced significant growth, with Xiaomi seeing a 40% increase in shipments and Huawei seeing a 10% increase.

Apple continues to list devices at full price on its own platforms. The tactic of reducing prices with third-party retailers allows the company to offer region-specific price adjustments without undermining its premium positioning globally.

Article Link: iPhone 16 Lineup Sees $350 Price Drop in China as Sales Decline
Click to expand...
Two words


Oversaturated Market
 
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gaximus said:
So even with tariffs, I can go to china and get a cheaper iPhone now?
Click to expand...
Less expensive and with a feature U.S. iPhones don't have... a SIM card slot.

SactoGuy18 said:
I think people forget that the CCP does not allow its members in political offices to own an iPhone, which has really killed iPhone sales in China.
Click to expand...
That's not true. They can own an iPhone. They just cannot use it for work-related purposes.
 
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Why would someone purchase the old, outdates iPhone 16, iPhone 16 Plus, iPhone 16 Pro, or iPhone 16 Pro Max when they can get the LATEST iPhone, the iPhone 16e?

Before you think I'm not being serious, this is what is advertised in the Apple Store: the iPhone 16e is the "latest" iPhone.
 
What is it with Macrumor? What are they so afraid to publish the actual price in USD.

5,469 yuan to USD is $759 USD, and that is with sales Tax in China. Compare to official US Price of $999, excluding Sales Tax.

Apple also has to paid import tax for iPhone in China as well. That is roughly $100 goes to the Chinese government. Effectively Apple is selling it at $659, compared to US.

I have been going on about this for so many years when can I take credit for it when it gain tractions. The world's iPhone selling price is subsidising China so Apple could maintain its overall margin.
 
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Reactions: RealE, gusmula, _Mitchan1999 and 11 others
citysnaps said:
It's tough for Apple to fairly compete in a market where the government *strongly encourages* its citizens to purchase and use Chinese mobile phones.

And mandates that government employees only use Chinese phones.
Click to expand...
Ok so what if government employees are mandated to use Chinese phones
Companies here go there employees iPhones to use do no difference there.

What is wrong with that
When governments in the west do that with products all the time
 
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