Full Breakdown
Apple Launches Discounts Ahead of Lunar New Year in China
1/22/2026, 10:55:31 PM
Promotional Discounts and Market Context
Apple Inc. is implementing significant discounts of up to 1,000 yuan (approximately US$144) on selected products in mainland China, coinciding with the upcoming Lunar New Year shopping period. This promotion, running from January 24 to January 27, 2026, includes discounts on the iPhone 16, iPhone 16 Plus, as well as various models of MacBook, iPad, Apple Watch, and AirPods. This initiative marks Apple's second major promotional effort within a month, following an earlier discount event from January 4 to January 7, where discounts reached up to 800 yuan.
The decision to offer these discounts is largely driven by a decline in monthly sales, despite Apple maintaining a leading 22% share of the Chinese smartphone market in the fourth quarter of 2025. Analysts, including Ivan Lam from Counterpoint, attribute the sales decline to weak demand amid rising prices and global memory shortages. The overall smartphone market in China contracted by 1.6% year-on-year in the same quarter, with full-year shipments down by 0.6%.
Competitive Landscape
Apple faces intensified competition from local Chinese smartphone manufacturers such as Huawei, Oppo, Vivo, and Xiaomi. These companies have been able to leverage government subsidies that provide consumers with a 15% refund on electronics priced under 6,000 yuan (US$820). Notably, Apple's iPhone Pro models exceed this price threshold, limiting its participation in the subsidy program and giving local competitors a potential advantage.
Official Statements & Responses
Apple's promotional strategy is seen as a necessary response to the changing market dynamics. Analysts suggest that these price cuts are aimed at capitalizing on the holiday shopping surge to sustain Apple's market share in a challenging environment. Lam noted, “[Apple’s] price cuts at this stage are a way to ride on holiday sales and maintain its market share.”
Criticism & Opposition
While Apple’s discounts may attract consumers, some analysts express concern that the company is struggling to adapt to the competitive pressures in the Chinese market. The inability to fully benefit from government subsidies has raised questions about Apple's pricing strategy and its long-term sustainability in a market increasingly dominated by local brands.
Conflicting Reports & Gaps
There are discrepancies regarding the overall impact of Apple's promotions. While some sources highlight the effectiveness of the discounts in driving sales, others suggest that the broader market conditions, including the decline in smartphone shipments, may overshadow these efforts. The exact reasons for the month-on-month sales decline remain a topic of discussion among industry analysts.
Verbatim Quotes
- “[Apple’s] price cuts at this stage are a way to ride on holiday sales and maintain its market share,” — Ivan Lam, Senior Analyst, Counterpoint
- “The discounts come into effect between January 24 and January 27.” — South China Morning Post
As Apple prepares for the Lunar New Year, the effectiveness of these promotions in countering declining sales and maintaining market dominance remains to be seen.
