Apple’s new iPhones struggle even at deep discounts in China

Apple’s new iPhones struggle even at deep discounts in China

Apple Inc’s latest generation of iPhone is having a tough time in the world’s largest smartphone market, where its most recent weekly sales are down by a third compared to last year.

Apple, Apple iPhone LawsuitChina sales of the four iPhone 14 models during their first 38 days on the market were down 28% compared to the iPhone 13 product family. (Image source: AP)

Apple Inc’s latest generation of iPhone is having a tough time in the world’s largest smartphone market, where its most recent weekly sales are down by a third compared to last year, according to Jefferies.

China sales of the four iPhone 14 models during their first 38 days on the market were down 28% compared to the iPhone 13 family of products, and the latest data shows that has deteriorated to 33%, according to a Friday note from analysts led by Edison Lee. The more expensive Pro variants, which had proven sturdier this year, also lost steam.

The global smartphone market, and China in particular, has been one of the hardest hit by this year’s decline in consumer spending. Samsung Electronics Co., the world’s largest maker of phones, displays and memory, called falling mobile phone sales in China a drag on its components business. The country also poses potential challenges for Apple on the supply side, where the key iPhone assembly plant in Zhengzhou was subjected to an abrupt collapse this week. COVID-19 lockdown.

While Chinese domestic brands have already weathered most of their sales slumps with big declines earlier in the year, Apple’s lineup retained its appeal, increasing sales by 5.7% in the three months to September, according to an earlier analysis by Jefferies.

An Apple representative did not immediately respond to a request for comment.

The crucial first few weeks of sales for Apple’s latest generation of phones set the tone for the company’s production and pricing plans for the rest of the year. Discounts for the Nov. 11 Singles Day shopping spree already appear to be bigger and more available than last year, Jefferies said. Shoppers at Alibaba Group Holding Ltd.’s Tmall can get a 400 yuan discount on the iPhone 14 as the festival approaches.

“The vast majority of iPhone 13 series buyers on Tmall last year probably didn’t receive any discounts. But this year’s discounts are available to everyone,” Lee and his colleagues wrote. “Even a few percentage point price cut would not help demand for non-Pro models due to unattractive price/performance, a growing used phone market and weak consumer confidence.”

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