FMP

FMP

Enter

Jefferies analysts believe that Apple's (NASDAQ:AAPL) recent iPhone discounts have created significant pricing pressure on local brands in China. The investment

Apple’s iPhone Discounts Squeeze Chinese Competitors, Jefferies Reports

-

twitterlinkedinfacebook
blog post cover photo

Image credit: FMP

Jefferies analysts believe that Apple's (NASDAQ:AAPL) recent iPhone discounts have created significant pricing pressure on local brands in China.

The investment firm noted that substantial discounts on the iPhone 15 series during the 618 shopping festival are putting pressure on Android and Huawei, suggesting that price cuts are likely Apple's only strategy to maintain its market share in China.

Their tracking indicates that discounts on Android and Huawei's flagship models have increased, with offline discounts averaging 8% to 10%, compared to online discounts of 2% to 7%. Prior to the 618 festival, discounts on these flagship models were minimal.

These substantial discounts on the iPhone 15 series likely make it more competitive compared to Android and Huawei's flagship models.

Analysts note that the iPhone 15 Pro and Pro Max are now priced similarly to the top-end models of Android and Huawei. With no discounts on the Mate 60 Pro and Pura70 Pro, their prices are currently higher than the cheapest promotional prices for the iPhone 15 Pro.

As a result, Apple has created significant pricing pressure on local brands, especially Huawei, whose flagship models are among the highest-priced local offerings.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep