Apple iPhone 16 not selling well? Chinese online retailer offers early discounts and promotions
Before the official launch of the new iPhone 16 series by Apple, Chinese online retailers have already started offering discounts, indicating weak demand. Pinduoduo and platforms under Alibaba are providing a 10%-11% discount on different models of the iPhone 16. Despite the official release of the iPhone 16 series on September 20th, pre-order sales in the first weekend are around 37 million units, a 12.7% decrease compared to the previous year. Apple is facing intense competition in the Chinese market, especially from the pressure of Huawei
According to the information obtained by Zhitong Finance and Economics APP, before the official launch of the new iPhone 16 series by Apple (AAPL.US), online retailers in China have already lowered prices.
Pinduoduo (PDD.US) has started selling the iPhone 16 Plus with 512GB storage space for RMB 8999 (approximately $1268), which is a 10% discount from the official price of RMB 9999. At the same time, the 128GB iPhone 16 is being sold at an 11% larger discount.
Pinduoduo and Alibaba's (BABA.US) Taobao platform are offering a 4% discount on the 256GB iPhone 16 Pro Max, reducing the price by RMB 400 to RMB 9599. Alibaba's Tmall shopping platform is providing buyers with the option of a 24-month installment plan without interest.
The discounts indicate weak demand for the new Apple phones in China. China is the world's largest smartphone market and one of the most competitive markets.
The Apple iPhone 16 series will officially go on sale on September 20th, but it will not come with the new artificial intelligence service Apple Intelligence, which will be launched in the US next month.
Apple will launch an English version of the artificial intelligence tool in several markets in December, while versions in other languages, including Chinese, will be released next year.
Reports on Monday estimated that pre-orders for the iPhone 16 series during the first weekend were around 37 million units, a decrease of about 12.7% compared to the first weekend sales of the iPhone 15 series last year.
Apple has been facing fierce competition from Chinese competitors in the Chinese smartphone market, such as the resurgent Huawei.
According to research firm Canalys, Huawei's smartphone shipments in China increased by 41% year-on-year in the second quarter of 2024, while Apple's iPhone shipments during the same period decreased by about two percentage points