Apple(US:AAPL) Qi Lu Wan Bao·2025-05-11 07:29Core Viewpoint - Apple has implemented a significant price adjustment for the iPhone 16 series, with reductions reaching up to 1,500 RMB, as a strategic move to boost sales ahead of the upcoming "618" e-commerce promotion [2][3]. Pricing Strategy - The price cuts affect all models in the iPhone 16 series, with the iPhone 16 Pro Max seeing a reduction of 160 USD (approximately 1,313.06 RMB) and the iPhone 16 Pro 128GB version dropping by 176 USD (1,445.27 RMB) [2]. - On platforms like JD.com, the iPhone 16 Pro Max 256GB is currently priced at 9,299 RMB, and with the "618" national subsidy policy starting on May 13, the final price could drop below 7,000 RMB [2]. Market Context - The price adjustment is interpreted as a strategic preparation for the "618" sales event, aiming to stimulate inventory turnover and enhance market competitiveness in the high-end smartphone sector [3][4]. - Historical data from the 2024 "618" promotion shows that iPhone models dominated sales rankings, with the iPhone 15 Pro Max leading, indicating strong brand influence despite higher average prices compared to competitors [4]. Competitive Challenges - Apple faces significant challenges in the Chinese market, with a 25% decline in iPhone shipments to 13.1 million units in Q4 2024, attributed to competition from local brands like Huawei [5][6]. - Market share for Apple in the high-end smartphone segment has decreased from 75% in 2022 to 54% in 2024, while Huawei's share has increased from 12% to 29% during the same period [5]. Sales Performance - In Q1 2025, Apple ranked fifth in the Chinese smartphone market with 9.8 million units shipped, a 9% decline year-on-year, contrasting with growth from competitors like Xiaomi and Huawei [6][7]. - The overall smartphone market in China grew by 3.3% in Q1 2025, highlighting Apple's struggle to maintain its position among leading brands [6]. Product Innovation and Future Outlook - Apple's product innovation has been perceived as conservative, with slow advancements in features compared to local competitors, particularly in fast charging and camera technology [8]. - The company is exploring new product innovations, including a potential large-screen foldable iPhone expected to launch in late 2026, which could provide new growth opportunities [9]. - However, potential increases in production costs due to U.S. tariffs on semiconductors could lead to higher prices for iPhones globally, impacting consumer affordability in China [9].