Apple Cuts Prices of iPhone, More in China
- Paul Thurrott
- Apr 01, 2019
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Apple has once again cut the price of the iPhone in China in order to meet the new realities it faces in that country. But this time is a bit different: Apple has also cut prices on iPads, Airpods, and Macs as well.
News of this second iPhone price cut comes from Caixin Global, but has since been confirmed by multiple publications. Caixin says that the price of various iPhones—including the iPhone X, iPhone 8 and iPhone 7—have been cut by over $40 per model. CNBC says the price cuts include Apple’s latest iPhones, too, like the XS, XS Max, and XR.
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Apparently, the price cuts are related to a new tax that goes into effect in China today and they extend to third-party sellers as well. Apple is reportedly offering refunds to customers who purchased products from them in the past two weeks.
Apple’s problems in China are well documented. The firm collected $13.17 billion in China-based revenues in the most recent quarter. But that’s down over $5 billion from the same quarter a year earlier. Apple has infamously blamed much of its iPhone sales shortfalls, in particular, on China.
But the problem isn’t really China, it’s Apple. Homegroup smartphone firms like Huawei have seen sales jump by double digits in recent quarters thanks to those companies offering lower prices and better meeting the needs of Chinese consumers.
And Apple’s products are still incredibly expensive in China, even with the price cuts. The low-end iPhone XR, for example, now starts at about $924 in China. But that same phone costs only $750 in the United States.
Apple has already warned that the current quarter would be challenging as well.
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Conversation 9 comments
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provision l-3
<p>The VAT for all the products mentioned was cut by 4%. The pricing adjustment seems to largely be a reflection of that. </p>
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dontbe evil
<blockquote><em><a href="#417678">In reply to unkinected:</a></em></blockquote><p>paul loves apple</p>
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provision l-3
<blockquote><em><a href="#417500">In reply to glenn8878:</a></em></blockquote><p>The phones are more expensive in China but it isn't 200 dollars. The Chinese prices include taxes while the U.S. don't. So, using my zip code, an iPhone XR is 749 + 61.79 in taxes for 810.79. The taxes in China work out to about 21% which would make the phone 907 if you apply the 21% to the U.S. 749 price. So the mark up on the phone is only 17 dollars. But, that is largely a distinction without a difference given the annual income of the average Chinese person as it is still crazy expensive but it is some sloppy reporting on the part of Paul. </p>
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dontbe evil
<p>apple cut price… they're really desperate </p>