On its newest iPhone models in China, Apple (AAPL, Financials) has declared discounts of up to 500 yuan ($68). Running from Jan. 4 to Jan. 7, the advertising campaign seeks to boost sales in face of growing competition from home competitors like Huawei Technologies. The Chinese website of the American tech behemoth states that the discounts apply only for purchases made with certain payment methods.
Apart from iPhones, Apple is giving consumers utilizing qualified payment alternatives discounts of up to 800 yuan on other items, including MacBooks. These promotions highlight Apple's approach to keep its grip in a market where regional brands are starting to take the stage.
The action comes as Apple's biggest overseas market, China, presents increasing difficulties. Local rivals such Huawei have introduced competitive products appealing to customers on a budget. With their sophisticated chip technology created locally, Huawei's newest cellphones have especially heightened competitiveness in the premium market.
Apple's sales performance in China has been further under pressure from China's slow down in the economy and cautious consumer spending. Reflecting these challenges, Apple's income in Greater China dropped 0.3% in the third quarter from year-ago level.
Appealing to price-conscious consumers and keeping its share in the vital Chinese market, Apple's current pricing drive emphasizes its attempts to stay competitive. Still, the efficacy of these policies is still unknown as the dynamics of the larger market keep changing.
