Apple(US:AAPL) Zheng Quan Shi Bao·2025-05-11 08:25Core Viewpoint - Apple is reducing the prices of its iPhone 16 Pro Max and iPhone 16 Pro models ahead of the 6·18 shopping festival, indicating a strategy to boost sales amid declining market performance in China [2][13][14]. Price Adjustments - Apple has notified its distributors of a price drop of $160 for all storage versions of the iPhone 16 Pro Max and $176 for the 128GB version of the iPhone 16 Pro [2][4]. - The iPhone 16 Pro 128GB is currently listed at 5999 yuan on e-commerce platforms, down from its original price of 7999 yuan, with an additional national subsidy of up to 500 yuan [2][4][11]. Market Performance - Apple's sales in China have not met expectations, with a reported 9% year-on-year decline in shipments, placing it fifth in the market with 980,000 units sold [13][14]. - The company's revenue in the Greater China region fell to $16.002 billion, down from $16.372 billion year-on-year, reflecting a decline of over 2% [13][14]. Competitive Landscape - Local brands like Huawei and Xiaomi are rapidly gaining market share in the high-end segment, contributing to Apple's declining market position [14]. - Apple's market share in China's high-end smartphone market has decreased from 75% in 2022 to 54% in 2024 [14]. Financial Performance - Despite the challenges in the Chinese market, Apple reported a 5% increase in total net revenue to $95.359 billion for the second fiscal quarter, with net profit also rising by 5% to $24.780 billion [15]. - The company has approved a stock buyback plan worth up to $100 billion, indicating strong financial health [15].