Apple just slashed iPhone prices in China for the first time this year

REUTERS/Thomas Peter

A attendee uses a new iPhone X during a presentation for the media in Beijing, China October 31, 2017.

• Apple has slashed the prices of various iPhone models in China by between 300 and 500 yuan (roughly between $44 and $75).
• The move comes as Apple has grappled with falling iPhone revenue and cited economic factors in China as a contributing factor to the reduced revenue guidance it issued for its fiscal first quarter of 2019.
• Apple is also facing increased competition from Chinese smartphone makers like Huawei and Oppo in the region.

Apple has lowered the prices of various iPhone models in China, according reports from Chinese news organization CX Live and CNBC published on Monday.

The company lowered prices for all models of the iPhone X, iPhone 8, and iPhone 7 by between 300 and 500 yuan (roughly between $44 and $75), according to CX Live. Popular third-party online retailers Tmall and JD.com also lowered iPhone prices earlier this year, but this would mark the first time Apple has done so on its official website. Apple is also offering discounts on iPads, AirPods, and Macs in China and will issue price refunds to those who have purchased affected products in the country within the last 14 days, according to CNBC.

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The move comes after Apple CEO Tim Cook pointed to the economic environment in China as a challenge that contributed to the company reducing its revenue guidance for Apple's first fiscal quarter of 2019. In a letter published in January, Cook wrote that most of the revenue shortfall to Apple's guidance and "over 100 percent of our year-over-year worldwide revenue decline occurred in Greater China across iPhone, Mac, and iPad" product lines. During its January earnings report, the company said iPhone revenue declined 15% from the prior year.

The company recently made a major push to boost its thriving services business amidst slowing iPhone sales, which reached an all-time high of $10.9 billion in revenue, by announcing new digital subscriptions in TV, gaming, and news.

Apple is discounting its most popular products in China as it faces increased competition from other smartphone makers in the region. Chinese electronics giant Huawei emerged as the smartphone market leader in the fourth quarter of 2018 with 28% of the market share, according to Counterpoint Research, while Oppo followed in second with 20% and Vivo placed in third with 19%.

Apple claimed 12% of the smartphone market share in China in the fourth quarter of 2018, making it the fourth biggest player. This represents a decrease from the same quarter the year prior, during which it tied for third place with 15% of the market alongside vivo and Xiaomi.