Apple has cut iPhone prices in China and the reason is this company banned in the US

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 ($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% in the first quarter of 2025, while domestic competitors Xiaomi and Huawei saw gains of 40% and 10% respectively, according to Reuters.


Huawei, Vivo, and other Chinese brands dominate as iPhone shipments fall

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% year-over-year, with Chinese brands now controlling 92% of the market.

For the first quarter of 2025, Apple's market share dropped to 14.1%, placing it fifth behind Chinese competitors Huawei (19.4%), Vivo (17%), Xiaomi (16.6%), and Oppo (14.6%).

Local incentive programs put pressure on foreign smartphone makers

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% decline, though revenue from Greater China still fell by 2%.

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.