VERY RARE: Why did Apple decide to offer discounts in China?

Imagine buying a new cell phone from Apple and with a discount, directly in the store, it is almost impossible. The company’s sales policy is far from this type of courtesy. But in China, the story is different.

Afraid that Chinese consumers are moving away from Apple products, the brand decided to react and the tactic is to reduce the price of iPhones by US$70 (about R$340).

In practice, this represents a 6% to 8% discount compared to the price charged on the company’s website.

Other than that, the technology giant chose to extend the measure to other products, such as the MacBook Air. The notebook’s price will be reduced by US$112 (around R$544) for those who buy it in store.

This promotion, something unthinkable when it comes to Apple, accustomed to high demand, started this Thursday (18) and runs until next Sunday (21).

Challenge outside the US

Smartphone sales fell 3% in China in 2023. Photo: Internet/Reproduction

Apple’s attitude, absolute success in the North American territory, exposes the challenges it faces in other places, especially in Chinaone of the largest electronics markets in the world.

At the same time that Chinese consumers began to opt for domestic brands, there are two other aspects: the increase in tensions between China and the USA and the fact that local brands invest heavily in innovation and technology.

Huawei, for example, is at the center of an issue involving diplomacy between the two countries.

The US government is suspicious of the brand’s close ties to the Chinese government and is afraid that the technology it produces could be used to espionage.

Beijing and Washington are currently engaged in a technological clash. On the North American side, government employees were prohibited from purchasing Huwaei products. On the Chinese side, the same thing happened, but in relation to Apple equipment.

Meanwhile, the US brand is starting to despair, as losing space in a significant market like China is not good for business. To give you an idea, revenue in the country represents 20% of Apple’s total revenue.

Local scenario

To complicate the situation, China is currently the only one, among the world’s large economies, that is experiencing a period of deflation, and this has been reflected in domestic consumption and spending.

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The sale of smartphones fell by around 3% in 2023 in the country due to the economic slowdown. In November last year, Apple itself reported a 2.5% drop in total sales in China.

Other than that, Huawei decided to react and aim for direct competition with Apple. The Chinese brand recently launched a device with an improved camera, a difference that has always been highlighted by the rival in its products.

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