Apple has lowered the prices of iPhones, iPads, Macs, and more in China.
In an unusual move for the company, a number of key product lines have seen price cuts for the first time, which could have an impact on Apple’s sales in China and help to shift more stock, in a market that has been blamed for Apple’s profit forecast cuts and a drop in share prices.
What’s changed?
According to CNBC, the price of the iPhone XR now starts at 6199 RMB, down from its previous 6499 RMB price tag. The iPhone XS and XS Max both enjoyed a 500 RMB price cut, starting at 8,199 RMB and 9,099 RMB respectively. AirPods, on the other hand, now retail at 1,246 RMB, down from 1,279 RMB, whilst the 11-inch iPad Pro has dropped to 6,331 RMB from 6,499 RMB.
Why is Apple dropping prices?
Apple previously confirmed it would look to adjust pricing in several international markets, telling investors that the favorable US currency was making products more expensive. Apple’s price cuts in China come at the same time as a reduction in China’s value-added tax (VAT), which was designed to boost the economy in the country. Apple isn’t actually dropping prices on its part – it’s simply conforming to government legislation and passing on the VAT price cut to consumers, rather than cutting its retail recommended price or hurting profits.
Will price cuts make a difference?
Earlier in the year, Apple issued its first revenue warning in more than 15 years, telling investors and the world’s media that there were “fewer iPhone upgrades” and “significantly greater” economic weaknesses in markets such as China, where Apple had worked to build its brand and stimulate sales.
The company has already offered discounts to third-party resellers in the country on iPhones to improve its results, but today’s across-the-board price cuts could offer a greater incentive to consumers looking to purchase a new phone.
In reality, these savings are small, and Apple products are still significantly more expensive than some local competitors, who can produce and market their smartphones, tablets, and other technology much cheaper in the country. And remember that Apple has to tread carefully; if it cuts prices too much, consumers won’t value the Apple brand as favorably, which could have a lasting impact on sales in the country. Apple has always been considered a premium brand, even more so in China where consumers value luxury goods and services.
It’s unknown whether Apple will live up to its price and offer deeper price cuts in the country, and indeed in other markets around the world. Only time will tell, so keep it AppleMagazine.com for the latest when we get it.