Apple's price reduction strategy works, iPhone sales growing steadily
Through the strategy of price cuts of up to ¥2,300 on e-commerce platforms such as Tmall, Apple's iPhone sales have managed to retain their growth trend.
According to data released by the China Academy of Information and Communications Technology (CAICT), shipments of foreign-branded smartphones in China increased from 3.603 million units in the same period last year to 5.028 million units in May this year, representing a growth of 1.425 million units.
Although not explicitly stated, major foreign smartphone manufacturer Apple (NASDAQ: AAPL) is considered the main driver of this growth. Apple stimulated sales growth by holding large-scale discount activities on the official Tmall website in China, with price cuts of up to 2,300 yuan for some iPhone models.
Apple's sales growth in May continued the rebound momentum from April, with sales increasing by 52%, significantly improving the situation after sales had declined by 37% in the previous two months. Nevertheless, Apple's revenue in the Greater China region still declined by 8.1% in the second quarter. Apple CEO Tim Cook predicted last month that iPhone sales would continue to grow in some markets, including China.
Meanwhile, competitor Huawei surpassed Apple in the first quarter to become the second-largest smartphone supplier in China. Huawei strengthened its retail strategy by opening flagship stores and expanding its retail distribution network.
In April, Huawei launched the new flagship smartphone series Pura 70, and its sub-brand Honor performed well in sales. Overall, smartphone market sales in China increased by 16.5% in May, reaching 30.33 million units.
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