• Apple's iPhone prices slashed by up to one-third amidst competition
• Prices on major e-commerce platforms have dropped significantly
• Government subsidies making premium models more affordable
• Apple aims to strengthen its market position before the 618 shopping festival

To combat fierce competition from local brands like Huawei and Xiaomi, Apple has reduced the prices of its iPhones in China by as much as one-third, or 2,500 yuan (approximately US$346). Although Apple has not issued an official price cut, significant discounts can be found on major e-commerce platforms, including JD.com and Alibaba's Tmall, where iPhone 16 models are now selling at substantially lower prices, such as the iPhone 16 Pro with 128GB available for 5,999 yuan after discounts. This price is notably lower than Apple's official price of 7,999 yuan, demonstrating the pressure from domestic competitors, according to South China Morning Post and India Times.

In addition to competitive pricing, the Chinese government's new subsidies for smartphones priced below 6,000 yuan are incentivizing these discounts. The subsidies, available in nearly 30 cities, allow consumers to receive up to 500 yuan off their purchases, effectively making some iPhone models eligible despite their premium status. The iPhone 16 Pro has become particularly attractive, now being sold at a price point that qualifies for this government support for the first time, according to reports from Business Insider and India Times.

The timing of these discounts aligns with the upcoming "618" shopping festival, a period where sales typically soar, compelling Apple to regain market share in an increasingly challenging environment marked by a decline in its market presence. Apple's share in the Chinese smartphone market has experienced a drop to 14.1%, placing it fifth behind local competitors. In contrast, companies like Xiaomi and Huawei have seen substantial growth in their respective market positions, as highlighted by a 39.9% increase in sales for Xiaomi, according to South China Morning Post and Business Insider.