According to a study by financial analysts at Jefferies, Apple (NASDAQ:) is offering larger price cuts in China for the June 18 sales event.
The analytics firm reported that the June 18 pre-sale events on JD.com and Tmall began on May 20, with a price reduction of 3 to 6 percent more for the iPhone 15 series compared to the iPhone 14 series. last year.
Apple is offering deeper price cuts to maintain its position in the Chinese market. The company has been affected by increasing competition and declining consumer demand.
“The Tmall platform (officially operated by Apple) and JD.com both promote similar price cuts (16%-24%) for the iPhone 15 Pro and iPhone 15 Pro Max, but the price cuts on Tmall are more larger than those on JD.com for the iPhone 15 and iPhone 15 Plus,” Jefferies said.
“We estimate that the average price reduction for the iPhone 15 Pro is approximately five percentage points higher than that of the previous year’s iPhone 14 Pro, while for the iPhone 15 Pro Max the average reduction is approximately three percentage points higher For the iPhone 15 and iPhone 15 Plus, Tmall’s price reductions are five to six percentage points higher than the previous year,” the analysts further explain.
Jefferies argues that Apple must take strong measures to protect its market position. Analysts noted that while high-end Android and Huawei models also enjoy some price promotions, the reductions are less significant, suggesting there is still strong demand for these products.
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