Lower prices expected for new iPhones to stabilize sales in China

Source:Global Times Published: 2019/9/10 23:33:50

Photo taken on September 6, 2019 shows Apple's Fifth Avenue store in New York, US. Photo: VCG

US technology company Apple's new launch event on Tuesday is expected to supply lower prices in China's market to stabilize sales and buffer damage brought on its brand image by the prolonged US unilateral trade war on China, according to analysts.

Old iPhone models are also expected to see further price cuts after the launch event, they said.

Apple's launch event of its new products is set to be held at its headquarters in California on Tuesday. Three iPhones—the iPhone XS, the iPhone XS Max, and the iPhone XR—will debut at the event.  

After the company's high prices saw a big failure in China last year, and its fall behind Huawei in the 5G era, Apple will cut prices this year, Zhang Yi, CEO of Shenzhen-based iiMedia Research, told the Global Times ahead of Apple's launch event.

The new iPhones are not expected to make large improvements on hardware or software, Zhang said.

Apple's sale growth in China in 2019 was mainly driven by online sellers' price cuts. As a US brand, the company's brand image among Chinese consumers has been largely impacted by the prolonged trade war between the two largest economies in the world.

According to data of Canalys, in first half of 2019, the iPhone XR accounts for 42 percent of its total shipments. The iPhone XR, iPhoneXS, and iPhone XS Max all account for 70 percent of its total shipments in China.

Based on its experience with high prices not being well accepted in China last year, Apple is expected to make adjustments on price in Chinese market this year, said Jia Mo, an analyst at Canalys.

As Apple stresses its internet services more, the company will take more efforts to stabilize its sales amid its woes ahead of the 5G era, Jia said, adding that the company would not rigidly stick to its high-end brand positioning as before in term of setting prices.

Posted in: COMPANIES

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