SHANGHAI- Third party retailers in China are offering discounts of as much as 10 percent on Apple Inc’s iPhone 14 Pro amid sluggish demand for smartphones.
Electronics vendors JD.Com Inc and Suning are currently selling the iPhone 14 Pro basic model for 7,199 yuan ($1,062), checks of JD.com’s app and Suning’s website showed. That is 800 yuan cheaper than the standard price on Apple’s official China website.
A number of other authorized Apple third party sellers are offering similar discounts on the iPhone 14 pro and Pro Max, Reuters checks of promotions on social media showed.
Apple did not immediately respond to a request for comment.
Apple will occasionally allow partner vendors in China to offer discounts on its phones to spur demand.
“The return of price cut even for the best-selling iPhone 14 models is not a good sign for demand,” Jeffries analyst Edison Lee wrote in a note to clients, adding that several Android brands have also cut prices.
China’s smartphone sales in 2022 clocked in at 286 million, the lowest level in a decade, with sales in the fourth-quarter sliding 14 percent due to poor demand, according to research firm Canalys.
Apple sales tumbled 24 percent in the quarter, Canalys said, in part due to an early release of the iPhone 14 series and in part due to supply chain issues caused by worker unrest at contract manufacturer Foxconn.
The China Securities Journal first reported the price cuts on Sunday.
China’s yuan firmed on Monday after touching a four-week low but gains were capped by strong US employment data that reinforced expectations the world’s largest economy can withstand higher rates for longer this year.
The yuan retraced some losses by midday after being weighed down by a rally in the US dollar on stronger-than-expected nonfarm payrolls data, which surged to 517,000 jobs and suggested the Federal Reserve could stay hawkish for longer.
“Strong US data implies that the US economy can still withstand further rate hikes. Prior to the nonfarm data release, the market was initially expecting the first interest rate cut to come in the third quarter,” said Christopher Wong, FX strategist at OCBC Bank. “But now that expectation has been pushed back to December.” – Reuters
