FMP
Apple’s iPhone Discounts Squeeze Chinese Competitors, Jefferies Reports
May 28, 2024 3:39 PM - Davit Kirakosyan
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.
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