Apple's iPhone price cuts in China are now being passed on to consumers

Apple's iPhone price cuts in China are now being passed on to consumers
The iPhone XR – Apple's cheapest 2018 model

Earlier this week, a new report revealed that Apple had cut iPhone 8, iPhone XR, and iPhone XS pricing for third-party retailers in China. And now, just as expected, these reductions are being passed on to consumers (via 9To5Mac).

Starting today, newer iPhone models cost between 15% and 22% less if purchased through retailers JD.com or Suning. Presumably, this move has been made in coordination with Apple’s new pricing strategy. But if the price fails to boost sales, the Cupertino giant may be forced to push down prices even further in the future.

The biggest discount of all has been applied to the iPhone 8. This smartphone now costs just 3999 yuan (around $590) at JD.com, a 21.5% reduction over its usual retail price of 5099 yuan (around $750). Alongside this, the newer iPhone XR has also seen a pretty hefty price cut of almost 17% from 6499 yuan (around $960) to 5399 yuan (around $800).

As expected, these price cuts are only available at licensed resellers. What this essentially means is that Chinese consumers looking to purchase iPhones through Apple Stores will have to pay the original retail prices. Nevertheless, the Cupertino giant is still offering an improved trade-in promotion.

Ultimately, only time will tell if these price cuts are sufficient to boost Apple’s sales in the region. But with competitors consistently churning out devices with much more eye-catching features, 2019 could prove to be a pretty tough year for Apple in China.

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14 Comments

1. jacky899

Posts: 431; Member since: May 16, 2017

The current iphone gen have too little changes to be worth the upgrade. The iphone X of last year was a phenomenal upgrade from previous year and hence saw record breaking success in China.

8. Valdomero

Posts: 697; Member since: Nov 13, 2012

They should've made the 2018 lineup like this: -XS Max -XS -X (lowered price, same specs) The XR made more obvious the greedy thought of Apple's CEO that consumers are blindly loyal for the brand.

12. Finalflash

Posts: 4063; Member since: Jul 23, 2013

But they are blindly loyal and deserve the Apple shaft. If they weren't iDiots, such as in the Chinese example, they would also be getting price cuts and competition. Instead, due to their obedience and stupidity, they will likely get shafted harder to make up for the Chinese shortfall.

2. Back_from_beyond

Posts: 1438; Member since: Sep 04, 2015

For Apple to push a price cut already, it must mean sales are lagging worse than previously let to believe. Pushing this price cut through resellers, means Apple wants to avoid directly admitting sales suck, having the option of saying resellers did it on their own accord, even though anyone that knows anything about Apple reseller contracts, knows they're not allowed to do that without consent.

5. joshuaswingle

Posts: 632; Member since: Apr 03, 2018

"Apple wants to avoid directly admitting sales suck." They literally lowered their revenue guidance by $9 billion because of iPhone sales in China. They also said that iPhone accounts for OVER 100% of their shortfall which basically means Services, Wearables and everything else dampened the blow.

7. Back_from_beyond

Posts: 1438; Member since: Sep 04, 2015

Apple has more or less said that sales aren't great, yet it's starting to point at sales suck with more production cuts. Even their Services revenue didn't meet expectations.

11. joshuaswingle

Posts: 632; Member since: Apr 03, 2018

If sales truly sucked they wouldn't be generating $84 billion in a quarter. There's no denying sales are weaker than everyone expected but they definitely don't suck. Apple is still the third largest manufacturer and all of their smartphones have huge profit margins. I know it's very easy to get carried away with this "Apple is doomed" stuff – I sometimes do too – but the company's numbers definitely aren't bad, they're just weaker than the forecast. Compare them to others and I think it's fair to say that most would love to sell the same number of devices.

14. midan

Posts: 3003; Member since: Oct 09, 2017

"Even their Services revenue didn't meet expectations." What are you talking about? "Apple's services business, a constant bright spot in recent quarters, hit a revenue milestone in Q4 2018: $10 billion (it's $9.98 billion to be exact, but Apple rounded up). That's an increase of 27 percent from Q4 2017, in which services including iCloud, Apple Music, the App Store, and others brought in $7.9 billion in revenue." And just ended Q1 will very likely to be record high for them.

3. darkkjedii

Posts: 31307; Member since: Feb 05, 2011

The wallets have spoken. Apple is getting checked, only the eight can't see it.

4. cncrim

Posts: 1588; Member since: Aug 15, 2011

Smartphone has hit pleateu and with that kind price tag is part of the blame.

6. apple-rulz

Posts: 2195; Member since: Dec 27, 2016

The wallets have spoken, so it’s a good thing Ralph Kramden will continue to buy Apple products. Sure he’ll complain about them (he gotta get them likes), but a sale is a sale.

10. darkkjedii

Posts: 31307; Member since: Feb 05, 2011

They won’t even post opening weekend and preorder sales anymore lol. They used to proudly boast about em. Welcome back to earth Apple, how were the tripz?

13. htcisthebest

Posts: 437; Member since: Nov 15, 2011

Reduce the price further to $300 or less then it will sell.

* Some comments have been hidden, because they don't meet the discussions rules.

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