Apple triggers smartphone price competition in China, says Jefferies By Investing.com

Apple triggers smartphone price competition in China, says Jefferies By Investing.com
Apple triggers smartphone price competition in China, says Jefferies By Investing.com

Analysts at Jefferies believe that Apple (NASDAQ:) has caused strong price competition among local smartphone brands in China, due to the company’s recent iPhone price reduction.

The investment firm said that the substantial discounts given during the 618 shopping festival on the iPhone 15 series challenge the sales of Android and Huawei smartphones, with these price cuts being “probably Apple’s only strategy to maintain its iPhone market share in China.

“Our recent market observations show that for high-end Android and Huawei (HW) models, discounts during the 618 festival have increased, with discounts in physical stores generally exceeding those found online,” reported the analysts.

“We noted that price reductions on these four premium models in physical stores average between 8-10%, while online price reductions range from 2-7% (with the exception of OPPO Find

These deeper price cuts on the iPhone 15 series likely boost its appeal over higher-end models from Android and Huawei.

“These reductions have positioned the prices of the iPhone 15 P/PM models much closer to those of the high-end Android+HW models,” the analysts add. Notably, as there are no discounts on the Mate 60 Pro and Pura70 Pro, their retail prices are now more expensive than that of the iPhone 15 Pro (based on the lowest promotional price).”

“As a result, we believe that Apple has exerted significant competitive pressure on the pricing of local brands, particularly HW, because HW’s premium models are sold at the highest prices among local brands.”

This article was created and translated with the help of AI technology and reviewed by an editor. For further details, please see our terms and conditions.

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