Apple(US:AAPL) 证券时报·2025-05-11 08:18Core Viewpoint - Apple has announced significant price reductions for its iPhone 16 Pro Max and iPhone 16 Pro models, indicating a strategy to boost sales amid disappointing performance in the Chinese smartphone market [1][8]. Pricing Strategy - Apple has reduced the price of the iPhone 16 Pro Max by $160 and the iPhone 16 Pro 128GB version by $176, with the latter now available for as low as 5,499 RMB after additional subsidies [1][2]. - The iPhone 16 Pro 128GB is currently listed at 5,999 RMB on various e-commerce platforms, with promotional activities starting from May 16 [2]. - In contrast, some physical retail stores still list the iPhone 16 Pro at 7,299 RMB, indicating a lag in price adjustments across different sales channels [4]. Historical Context - Apple has a history of price reductions prior to major sales events, as seen with the iPhone 15 series, which saw price cuts of up to 2,350 RMB during the 6.18 shopping festival [6]. - In March 2023, Apple implemented a system-wide price cut of 1,500 RMB, bringing the iPhone 16 128GB to a record low of 4,499 RMB [7]. Market Performance - Apple's sales in China have not met expectations, with a reported 9% year-over-year decline in shipments, placing it fifth in the market with 9.8 million units sold [8][9]. - The company's revenue in the Greater China region fell by over 2% year-on-year, from $16.3 billion to $16.0 billion [8]. - Canalys forecasts a 17% decline in Apple's shipments in China for 2024, with Huawei surpassing Apple in annual sales [9]. Competitive Landscape - Apple faces increasing competition from local brands like Huawei and Xiaomi, which are rapidly gaining market share in the high-end segment due to diverse product offerings and strong performance [9][10]. - Apple's market share in the high-end smartphone segment in China has decreased from 75% in 2022 to an estimated 54% in 2024 [10]. Financial Health - Despite the price cuts, Apple reported a 5% increase in total net revenue for Q2 of the 2025 fiscal year, reaching $95.36 billion, with a net profit of $24.78 billion [10]. - The company has also approved a stock buyback plan worth up to $100 billion, indicating strong financial health and confidence in its long-term strategy [10].