Jefferies analysts believe that due to Apple’s recent iPhone price cuts, the company has initiated strong competitive pricing among local brands in China.
The investment firm noted that significant discounts on the iPhone 15 series during the 618 shopping festival have put pressure on Android and Huawei devices, stating that price reductions are likely “Apple’s likely sole strategy to maintain its iPhone market share in China.”
Analysts stated, “Our recent observations show increased 618 festival discounts on Android and Huawei (HW) premium models, with physical store discounts generally higher than those found online.”
“We observed that price reductions on these four premium models in physical stores ranged from an average of 8% to 10%, while online discounts ranged from 2% to 7% except for a 10% discount on the OPPO Find X7 before the 618 festival.”
More significant price cuts on the iPhone 15 series are likely increasing its appeal compared to Android and Huawei’s premium models.
Analysts said, “These discounts have brought the prices of the iPhone 15 Pro and iPhone 15 Pro Max much closer to Android and Huawei’s high-end models.”
“In particular, since there were no discounts on the Mate 60 Pro and Pura70 Pro, their retail prices are currently higher than those of the iPhone 15 Pro (at the lowest promotional price).”
“Therefore, we conclude that Apple has significantly competitive pricing against local brands, especially Huawei, as Huawei’s premium models are priced at the highest levels among local brands.”
Source: investing.com
