Apple faces significant challenges in the Chinese market. Despite maintaining a strong market position, sales are declining, while competition from local manufacturers and political regulations are increasing. In response, Apple is implementing targeted price reductions around the Chinese New Year to stabilize demand in the short term.
The Chinese market is of central importance to Apple, yet it is also one of the most challenging worldwide. Price promotions are firmly established there, especially before major purchasing periods. Apple's official offer of discounts is a clear signal that the company is taking the current revenue decline seriously and intends to actively counteract it.
Limited-time discounts for the Chinese New Year
According to a report by the South China Morning Post, Apple is offering discounts of up to 1,000 yuan (approximately US$144) on select products in mainland China. The promotion runs from January 24th to 27th and is valid in both the official online store and physical Apple Stores.
Among the discounted items are the iPhone 16 and iPhone 16 Plus. Additionally, certain models from other product categories are included in the promotion, such as MacBooks, iPads, Apple Watches, and AirPods. With these price reductions, Apple is deliberately positioning itself ahead of the Chinese New Year in February, one of the most important sales periods of the year.
Market leadership despite declining momentum
In the fourth quarter of 2025, Apple remained the market leader in the Chinese smartphone market with a market share of 22 percent. This position was primarily supported by strong sales figures for the iPhone 17. Despite these successes, weaknesses have recently emerged: Sales figures declined month-on-month.
The current special offers are clearly designed to counteract this decline and increase purchase intent in the short term. Apple is reacting not only to its own figures but also to the generally more challenging market environment.
Shrinking smartphone market in China
The Chinese smartphone market as a whole saw a decline of 1.6 percent in the fourth quarter of 2025 compared to the previous year. For the entire year, shipments fell by 0.6 percent.
Analysts at Counterpoint Research attribute the decline primarily to weak demand, further hampered by rising device prices. Added to this is the ongoing global shortage of memory chips, which negatively impacts production and availability.
Government subsidies intensify competition
Another factor is the policy of the Chinese government. As part of state subsidies, buyers of electronic products receive a 15 percent refund, provided the device price is below 6,000 yuan, approximately US$820.
This program is of limited use to Apple. Many iPhone Pro models significantly exceed this price limit, thus excluding them from the subsidies. Local manufacturers, whose devices more frequently fall below the threshold, benefit more and can offer their products at more attractive prices.
Apple seeks stability in its strained Chinese business
Apple is responding to declining sales in China with targeted discounts and is attempting to reposition itself during the crucial New Year season. Despite a continued strong market position, clear pressures are emerging from market shrinkage, political conditions, and increasing price pressure. The current promotions are a short-term measure to stimulate demand, but they also illustrate how strained the situation has become for Apple in the Chinese market. (Image: Shutterstock / badboydt7)
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