Apple provides iPhone discounts in China as competition rises.

BEIJING (Reuters) — Apple is providing unprecedented discounts of up to 500 yuan ($68.50) on its latest iPhone models in China, as the US tech giant seeks to maintain its market share against mounting competition from Chinese competitors such as Huawei.

The four-day sale, which runs from January 4 to 7, applies to certain iPhone models when purchased with particular payment methods, according to the company’s website.

The premium iPhone 16 Pro, beginning at 7,999 yuan, and the iPhone 16 Pro Max, starting at 9,999 yuan, will receive the largest reduction of 500 yuan. The iPhone 16 and iPhone 16 Plus will get a 400 yuan discount.

The cuts come as customers remain wary about spending given China’s faltering economy and deflationary pressures, with consumer inflation falling to a five-month low in November.

Apple is facing diminishing market share in China, the world’s largest smartphone market, where Chinese competitors have stepped up rivalry.

Huawei has emerged as a particularly formidable rival with its comeback to the premium sector in August 2023, using locally manufactured chipsets. Over the weekend, Huawei reduced the pricing of a range of high-end gadgets, including mobile phones, by up to 3,000 yuan on one of China’s largest e-commerce sites.

Apple momentarily dropped out of China’s top five smartphone providers in the second quarter of 2024, but recovered in the third quarter. According to IDC, the US company’s smartphone sales in China fell 0.3% in the third quarter compared to the previous year, while Huawei’s sales increased by 42%.

Apple’s campaign also features discounts ranging from 200 to 300 yuan on older iPhone models, as well as other product categories including MacBook computers and iPad tablets. Customers must utilize certain payment methods, like as WeChat Pay or Alipay, to qualify for the discounts.