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Apple Launches Rare iPhone Discounts in China to Counter Local Competition

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Apple is offering limited-time discounts of up to 500 yuan ($68.50) on its latest iPhone models in China, aiming to bolster its market share amid intensifying competition from domestic rivals like Huawei. The four-day promotion, running from January 4 to January 7, includes discounts on several iPhone models when purchased with specific payment methods.

The flagship iPhone 16 Pro and iPhone 16 Pro Max, priced at 7,999 yuan and 9,999 yuan, respectively, will see the largest discounts of 500 yuan. Meanwhile, the iPhone 16 and iPhone 16 Plus will receive a 400 yuan reduction.

Intensified Competition and Economic Pressures

The price cuts come at a time when consumer spending in China is cautious, impacted by the country’s slowing economy and deflationary pressures, with consumer inflation hitting a five-month low in November.

Apple has faced declining market share in China, the world’s largest smartphone market, where local manufacturers have stepped up their game. Huawei has been a particularly strong competitor, re-entering the premium smartphone market in August 2023 with locally-made chipsets. Huawei also slashed prices of its high-end devices, including smartphones, by up to 3,000 yuan over a recent weekend sale on one of China’s major e-commerce platforms.

Apple’s Struggles and Recovery

Apple briefly fell out of China’s top five smartphone vendors in Q2 2024, although it managed to recover by Q3. However, its smartphone sales in the region still declined by 0.3% year-over-year in Q3, while Huawei’s sales surged by 42%, according to research firm IDC.

In addition to iPhones, the promotion also offers discounts of 200 to 300 yuan on older iPhone models, as well as reductions on MacBook laptops and iPad tablets. Customers must use designated payment methods such as WeChat Pay or Alipay to qualify for the discounts.

 

Shopify Shares Surge 22% on Strong Earnings and Positive Forecast

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Shopify’s stock surged up to 22% in early trading on Wednesday after the company reported stronger-than-expected second-quarter earnings, despite a mixed consumer spending environment. The Canadian e-commerce giant’s performance exceeded Wall Street predictions, showcasing resilience amid economic uncertainty.

For the second quarter, Shopify reported earnings per share of 26 cents, surpassing the anticipated 20 cents, and revenue of $2.05 billion, beating expectations of $2.01 billion. The company’s gross merchandise volume (GMV) reached $67.2 billion, a 22% increase from the previous year and exceeding the consensus estimate of $65.8 billion.

Shopify, which offers e-commerce software, advertising, and payment processing tools, highlighted strong demand and its ability to capture market share despite the challenging economic backdrop. CFO Jeff Hoffmeister noted that the company is thriving even as consumers remain cautious and opt for cheaper alternatives.

The performance stands in contrast to recent earnings reports from rivals like Amazon, Etsy, and Wayfair, which have indicated a more cautious consumer spending trend. Shopify executives attribute their success to the diverse range of businesses using their platform, with President Harley Finkelstein emphasizing that their broad merchant base contributes to their robust performance.

Looking ahead, Shopify anticipates a revenue growth rate in the low-to-mid-20s percentage range for the third quarter, aligning with analysts’ expectations of a 21% increase to $2.07 billion.