Apple(US:AAPL) Guan Cha Zhe Wang·2025-05-14 06:30Core Viewpoint - Apple has significantly reduced the prices of its iPhone 16 series ahead of the "6·18" shopping festival, with discounts exceeding 1,000 yuan, in response to disappointing sales performance in the Chinese market [1][6]. Price Reduction Details - Apple announced a price cut of $160 (approximately 1,313.06 yuan) for all storage versions of the iPhone 16 Pro Max and a $176 (approximately 1,445.27 yuan) reduction for the 128GB version of the iPhone 16 Pro [1]. - On platforms like JD.com, the iPhone 16 Pro 128GB version, originally priced at 7,999 yuan, is now available for 5,499 yuan after applying national subsidies, marking a reduction of 2,500 yuan [2]. - The iPhone 16 Pro 128GB version on Tmall's official Apple Store is also priced at 5,499 yuan, reflecting a 31% discount from its original price [4]. Market Response - The price cuts have led to a surge in demand, with the subsidized iPhone 16 Pro 128GB version reportedly selling out quickly [4]. - Various platforms, including Pinduoduo, have also reported significant price drops for different iPhone models, with some versions seeing reductions of over 2,000 yuan [4]. Sales Performance - Apple's sales in the Greater China region have been declining, with a reported revenue of $15.033 billion for Q4 of fiscal year 2024, marking the only region with a year-on-year decline [6]. - In Q1 of fiscal year 2025, revenue from the Greater China region was $18.51 billion, down 11% year-on-year, and in Q2, it further decreased to $16 billion [6]. - According to IDC, Apple ranked fifth in smartphone shipments in China, with a 9% year-on-year decline, while competitors like Xiaomi, Huawei, OPPO, and Vivo continue to dominate the market [6]. Strategic Adjustments - Apple has been implementing multiple price reductions since the launch of the iPhone 16 series, indicating a shift towards regular promotions as demand wanes [8]. - The company is also exploring new product innovations, such as foldable smartphones, which may be launched depending on the sales performance of the iPhone [9].