Apple's discount strategy is starting to show results, with iPhone shipments in China rebounding in March.
According to media reports on Wednesday, stimulated by promotional activities in the Greater China region, iPhone shipments in China in March increased by about 12% year-on-year, sharply contrasting with a 37% year-on-year plunge in iPhone sales in the first two months of 2024.
According to the latest monthly report from the China Academy of Information and Communications Technology, shipments of foreign brand smartphones grew year-on-year to 3.75 million units, with the majority being Apple products.
However, data still shows that overall shipments of foreign smartphones in China in the first quarter of 2024 declined by 27%.
The rebound in iPhone shipments also echoes Apple CEO Cook's remarks during last week's earnings call, where Cook stated that the company's business in mainland China grew in March, but did not disclose specific numbers.
Since 2023, iPhone sales in China have been under pressure, and Cook reiterated the importance of the market, which, despite continued contraction, still contributes 18% of net income.
To reverse the decline, Apple and its Chinese distributors have been offering significant discounts since early 2024, and last week's earnings report showing better-than-expected revenue growth in China confirms the initial success of this strategy.
Analysts have been closely monitoring Apple's performance in China, as China is not only an important market for the iPhone but also the world's largest production base. This week, Apple released new iPad Pro and iPad Air models in an attempt to revitalize another product line

AAPL

This is in stark contrast to the sharp 37% year-on-year drop in iPhone sales in the first two months of 2024

Price cuts boost Apple's March shipment volume in China by 12%