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‘Patriotic Consumption’ due to sluggish sales in the Chinese market… Apple, unusual ‘discount card’

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Apple ban – Huawei, etc. in hot pursuit
‘There is no choice but to do nothing’ as iPhone sales plummet
Up to 800 yuan discount event from 18th to 21st

Apple has launched an unusual product discount in the Chinese market. Amid the conflict between the United States and China, the Chinese people’s tendency toward patriotic consumption strengthened, and Apple’s sales were sluggish, so they came up with a desperate measure.

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According to the electronics industry on the 16th, Apple will sell the iPhone 15 product line at a discount of 500 yuan (about 90,000 won) from the 18th to the 21st through its official Chinese website. The premium product iPhone 15 Pro Max was also included. Some laptop MacBook Air products and tablet PC iPads are also discounted by 400 to 800 yuan. The discount rate is around 6-8% depending on the product.

Although Chinese retailers have sold Apple products at discounts in the past, it is unusual for Apple to take the initiative and hold a discount event through its own channels. Apple held a discount event ahead of China’s Lunar New Year and even added an image of a giant dragon surrounding the Apple logo to its official website. Major foreign media outlets also evaluated Apple’s actions as “something that is difficult to see.”

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The reason Apple brought out the discount card like this is because sales in the Chinese market are decreasing. Investment bank Jefferies estimated that iPhone sales in the first week of this month in the Chinese market decreased by 30% compared to the previous year. Additionally, iPhone sales in the Chinese market last year fell 3% compared to the previous year. Looking at quarterly market share, Apple ranked first with 20% in the first quarter of last year (January to March), ranked third with 16% in the second quarter (April to June), and 15% in the third quarter (July to September). fell to 4th place. China is Apple’s second-largest market after the United States and Europe, and 18% of sales come from China.

The decline of Apple, which holds more than 60% of China’s premium smartphone market share, is largely due to the patriotic consumption of Chinese consumers.

Additionally, as the conflict between the U.S. and China intensified, antipathy toward Apple has grown, with the Chinese government, local governments, and public enterprises recommending that their employees refrain from using Apple. In fact, while Apple’s market share fell, Huawei’s market share rebounded. Huawei’s market share in China, which was 10% in the first quarter of last year, rose to 14% in the third quarter.

Source: Donga

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