Last January, Apple cut prices for iPhones in China; in March, another reduction occurred there; now, according to the CNBC, a new cut – this time around 6% (taking into account all affected products).
The reason for the reduction is the same: weak sales in the country. And since China today has enormous representation for Apple, it cannot afford to have a poor commercial performance there. It is worth noting that the cut this time did not only affect iPhones, no. According to the article, both smartphones and iPads, Macs and AirPods had their prices reduced.
There is, however, a good incentive that helped Apple to cut prices: there was a tax cut in China that came into force just today, April 1, causing the value-added tariff for manufacturers to fall by 16% to 13%, as disclosed by Caixin. This reduction in the tax imposed by the Chinese government was due to the slowdown in economic growth, which reached record levels.
Unlike the first two reductions, this can even be seen in Apple’s own online store. The 64GB iPhone XR was priced at CN ¥ 6,499; the device is now on sale for CN ¥ 6,199 (a 4.6% decrease). The iPhones XS and XS Max are now CN ¥ 500 cheaper. The company even said that customers who bought these products (which suffered adjustments) in the last 14 days will be able to receive a refund of the difference.
We’ll see if more of that attitude from Apple solves things there. In the meantime, we (Brazilians) are still waiting for the much-promised iPhones price reduction commented by Tim Cook during the release of the financial results for the first fiscal quarter of 2019. Apple CEO never mentioned our country, but all explanation given by him (appreciation of the dollar and a new policy of no longer pricing iPhones taking into account the American currency but the condition of the local market) made us believe that Brazil would be in – until now, however, nothing …
via The Loop