Apple has cut iPhone prices in China and the reason is this company banned in the US
Apple has significantly reduced iPhone prices in China, offering discounts up to one-third, as the company faces declining shipments and increased competition from domestic brands like Huawei and Xiaomi. These price cuts, timed before the "618" shopping festival, aim to qualify for government subsidies and regain market share amidst a challenging economic landscape.
Highlights

Apple has cut iPhone prices in China by up to one-third as the tech giant struggles to maintain its position in the world's largest smartphone market. According to Reuters, discounts of up to 2,530 yuan (USD 351) are now available on major Chinese e-commerce platforms for the latest iPhone 16 models.
The iPhone 16 Pro with 128GB storage is now selling for 5,469 yuan on JD.com, a significant reduction from Apple's official price of 7,999 yuan. Similar discounts are available on Alibaba's Tmall marketplace, where the same model costs 5,499 yuan after applying coupons that include government subsidies.
These price cuts come as Apple's smartphone shipments in China dropped 9 per cent in the first quarter of 2025, while domestic competitors Xiaomi and Huawei saw gains of 40 per cent and 10 per cent respectively, according to Reuters.
The China Academy of Information and Communications Technology (CAICT) data reveals a stark decline in Apple's market presence. March smartphone shipments for non-Chinese brands—predominantly Apple—fell by nearly 50 per cent year-over-year, with Chinese brands now controlling 92 per cent of the market.
For the first quarter of 2025, Apple's market share dropped to 14.1 per cent, placing it fifth behind Chinese competitors Huawei (19.4 per cent), Vivo (17 per cent ), Xiaomi (16.6 per cent), and Oppo (14.6 per cent).
Part of Apple's strategy appears aimed at qualifying for Chinese government subsidies, which offer residents in nearly 30 cities and provinces up to 500 yuan for smartphones priced under 6,000 yuan.
The South China Morning Post reports that Apple has strategically priced the iPhone 16 Pro at 5,999 yuan on major platforms, just below the subsidy threshold, making the premium model eligible for government support for the first time.
Apple CEO Tim Cook acknowledged in a recent earnings call that China's "national subsidies" have helped improve performance compared to the previous quarter's 11 per cent decline, though revenue from Greater China still fell by 2 per cent.
The price cuts are also timed ahead of China's annual "618" shopping festival on June 18, one of the country's largest retail events, as Apple attempts to regain ground in an increasingly competitive and economically challenging Chinese market.
- Published On May 15, 2025 at 12:17 PM IST