William Gallagher
Two months after mass discounts previously led to price cuts on some iPhone models, vendors in China are expanding that to now also include the iPhone XS and iPhone XS Max.
Online stores in China have begun a second wave of severely discounted prices on iPhones this year and for the first time included the iPhone XS and iPhone XS Max. Price cuts include over 1,000 Yuan or approximately $150 for a 64GB iPhone XS. The 256GB iPhone XS Max is being discounted by 1,700 Yuan or $250 by one reseller. The moves follow Apple's poor sales in China.
According to Reuters, many online resellers in China are cutting prices and the news service reported on details from three. Suning.Com, Pinduoduo and JD.com are each reported to be offering these discounts, though none would discuss the reasons with Reuters.
While different stores are discounting by varying amounts, the discounts mean that, for example, Suning is selling the iPhone XS 64GB to 8599 yuan ($1,282) versus $999 in the US. Similarly, JD.com has discounted the iPhone XS Max 256GB down to 9999 yuan ($1,490.50), versus $1,249 in the US.
Pinduoduo is a platform for many resellers, and some of those discounted the iPhone XS in January. However, neither Suning or JD did so, making this is an expansion of which Apple phones are receiving discounts.
At time of writing, Suning is offering certain discounts for a very limited time with a countdown clock set to expire today. Reportedly, Suning saw sales of Apple products rise 83 percent during its January price cut.
Apple has not commented on this latest round of price cuts. However, the company did lower its own prices in China after Tim Cook revealed details of international pricing plans in February's quarterly results earnings call.
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1 Comment
U.S. retailers have also been discounting the iPhone X series. Fry's started offering a $200 discount on the 128GB Xr in December, then it went to $250, now the dicount is $300, which means you can now get a 128GB iPhone Xr for $500. In my inbox today was a deal for $350 off an iPhone XS Max. These Fry's deals require that you use AT&T for your carrier and pay off the balance of the phone in 30 installment payments to AT&T, but it is still a relatively hefty discount compared to the past few years.
And the fact that the Xr discount started at $200 in December and in just a couple of months increased to $250, then to $300 is an indication that the latest round of iPhones are also not selling as well in the U.S., which I think most people are aware of at this point. So I don't think resistance to iPhone X prices is just a China thing, or for that matter just an iPhone thing. I think with smart phones in general the upper limits of the price-point threshold have been reached, at least for the next few years.