Market Overview

Apple Cuts iPhone Prices in China To Push Sales As Country Reopens Economy

Apple Cuts iPhone Prices in China To Push Sales As Country Reopens Economy

Apple Inc. (NASDAQ: AAPL) has cut prices on the latest iPhone models in China. This comes ahead of a big online shopping festival with the Chinese economy picking up steam after COVID-19 lockdowns.

What Happened

Apple’s channel partners Alibaba Group Holding Ltd (NYSE: BABA) owned e-commerce website Tmall, and Inc. (NASDAQ: JD), an official reseller, are offering steep discounts on iPhones in China during the 6.18 shopping festival. 

On Tmall, prices have been cut for the iPhone 11 64GB model that is selling for $670, 13% less expensive than the original price of $772. The iPhone 11 Pro is going for $1,063 instead of $1,220. The iPhone SE is being sold for $435 instead of $463.

As of Monday, price cuts are even steeper on, with the iPhone 11 Pro Max selling at $1,052, a 21% discount on the full price.

A JD spokesperson told CNBC that prices vary day-by-day during the 6.18 shopping festival, but discounts are available each day.

Why It Matters

The 6.18 shopping festival, which lasts several days, begins on June 18, and this is only the second time Apple is taking part in it, reported CNBC. 

Third-party resellers are offering discounts as well, on both and Tmall, an indication of the fierce competition among China’s retailers as they compete for sales.

Apple has sold 3.9 million iPhones in China since April, a 160% increase from March. Sell-in shipments, which refer to sales made to retail partners, rose 30%, up to 3 million in April over March.

Price Action

Apple shares traded 0.34% lower at $320.75 in the after-hours session on Monday. The shares had closed the regular session 1.23% higher at $321.85.


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Posted-In: China CNBC Covid-19 iPhoneNews Tech Best of Benzinga