After failing to properly fix the price of its latest range of iPhone to stay competitive and innovate enough to make the latest iPhone more attractive than their competitors, the iPhone XS, XS Max and XR prices of Apple has been reduced by 20 times. % by Chinese retailers.
We do not yet know what is behind this price reduction campaign, but this may be either Apple's decision to lower the price of the phone sold to Chinese distributors, or the decision of Chinese distributors to temporarily reduce their prices. profits to earn more in the long run. term by moving more iPhone units.
Canalys analyst Mo Jia, who oversees the Chinese smartphone industry, told Reuters: "Apple may want to test market returns if it lowers channel prices. under pressure to clean his iPhone stock ".
IPhone prices cut to compete with local brands
In addition, according to the analyst, these price cuts generally occur around Chinese holidays or the November single party, but Cupertino has never made any promotions outside these periods, especially for its latest models. iPhone.
Moreover, seeing that Apple has kept all the price of the iPhone on its own Chinese portal, these price cuts are probably due to the fact that Chinese retailers have decided that their iPhone stocks should disappear.
According to CNBC research on this issue, many retailers in China are selling iPhone XS, XS Max and XR units through promotions that offer final price tags that are considerably lower than those of the official Chinese Apple Store.
One of the most recent cost savings for the iPhone in the country came from Suning, a major Chinese retailer, which has changed the price of the 128GB version of the iPhone XR from 6,999 yuan ($ 1,036) to 5,799 yuan ($ 858), or 1,200 yuan ($ 178). ) discount.
Other third-party sellers on the site were selling even cheaper devices, offering flash sales to try to unload iPhones. One of the sellers had a 256GB version of the iPhone XS Max, the highest-end device Apple, for 9,699 yuan ($ 1,436), well below the official selling price of the US firm of 10,999 yuan ($ 1,628) for this smartphone.
A very disturbing start to the year for Apple
Recent prices for new iPhones follow Apple's 10% reduction in production prior to Tim Cook's letter to Apple's investors in early January, when the company announced a reduction in revenues for the first quarter of 2019.
Following Cook's message, Apple's stock has seen a sharp 38% decline between a valuation of 232.07 euros per share on Oct. 3 and a low of $ 142.08 per share the day after the publication of the letter.
The CEO of Apple has imputed the adjustment of revenue estimates to the contraction of iPhone sales in China, saying that "revenue below expectations, mainly in Greater China, account for all of our revenue losses, and much more than our revenues from one year to the next.
To make matters worse for Apple, Cupertino has also had to withdraw the iPhone 7 and 8 stores in Germany after Qualcomm issued $ 1.5 billion (1.34 billion euros) in bonds in order to Apply a decision of a German court imposing a preliminary sanction to both models.
To top it off, Apple was also sentenced by the Fuzhou Intermediate People's Court in December 2018 to stop selling and importing all the iPhone 6 models to the X in China after deciding that Cupertino was infringing two Qualcomm patents.