As the US-China hegemony war intensified, consumption of American products in China decreased significantly, leading American technology companies Apple and Tesla to cut prices in China one after another.
iPhone 15 series. ⓒ News1 ◇ Apple iPhone 15 price reduced by 240,000 won
: Bloomberg News reported on the 1st that Apple, which is famous for not cutting prices, took the extreme step of lowering prices when iPhone sales in China slowed significantly.
Apple’s latest iPhone, the ‘iPhone 15 Pro Max’, is being sold for 1,300 yuan (about 240,000 won) lower than the existing price on Alibaba Tmall, China’s largest e-commerce site.
It is traded at similar prices not only on Alibaba but also on other e-commerce sites such as JD.com.
This is because iPhone sales are sluggish in China.
“IDC’s preliminary data for January shows that iPhone sales in China fell 10% year-on-year, while Huawei recorded triple-digit growth during the same period,” said Will Wong, an analyst at data firm IDC.
As iPhone sales slowed, Apple’s sales in China last quarter fell 13% year over year to $20.8 billion. This is far short of the $23.5 billion expected by the market and is Apple’s weakest performance in China in the past few years.
As a result, Apple has been experiencing difficulties recently, with its stock price falling. Accordingly, the price appears to have been reduced again. It is very unusual for Apple to reduce the price of a new product.
◇ Tesla also reduced price by 6.39 million won
: Tesla also lowered its price again on the 3rd (local time) by paying a large amount of incentives.
In a post posted on Weibo (Chinese Twitter) on this day, Tesla said, “Customers who purchase the representative models Model 3 and Model Y sports utility vehicle (SUV) by the end of March will receive an incentive of up to 34,600 yuan (about 6.39 million won).” “I plan to do it,” he said.
Facing slowing demand and intensifying competition, Tesla lowered the prices of the Model 3 and Model Y in China in January and began offering cash compensation for some Model Ys starting February 1.
This is interpreted to be because its biggest rival, BYD, lowered its price on the 1st. BYD lowered the starting price of the new version of the ‘Song Pro Hybrid SUV’ by 15.4%.
In response to BYD’s price cut, Tesla appears to have lowered its prices again.
As the U.S.-China hegemony war intensifies and American products are not selling well in China, leading American companies are crying and deciding to cut prices in China one after another.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.