Apple is offering discounts on its newer iPhones in China for the first time in years, amid mounting concerns of weak demand there due to new competition and a sluggish economy. AAPL stock fell modestly Tuesday, losing its market cap crown to Microsoft.
The Dow Jones tech titan is cutting retail prices by RMB 500 ($70), discounting some iPhones by 5%, according to Apple's China website. It's a Jan. 18-21 promotion ahead of the Lunar New Year, which is in February.
Apple often discounts various products for Lunar New Year, but hasn't done so for new iPhones in years.
Discounts on some Apple gadgets are as high as RMB 800.
Chinese e-commerce sites such as Pinduoduo, a unit of PDD Holdings, have discounted iPhone 15 variants by as much as 16%, Reuters reported.
Several analysts have downgraded Apple stock already this year, often focused on China iPhone concerns. Jefferies estimated that Apple iPhone sales plunged 30% in China in the first week of 2024.
Last August, Chinese technology giant Huawei surprised with its new advanced phone, the Mate 60 Pro, fueling massive orders. Meanwhile, a growing number of Chinese government agencies and state-owned firms have banned the Apple iPhone and other foreign handsets at work.
That's also amid the backdrop of a sluggish Chinese economy.
Apple Watch
Apple will remove a blood-oxygen feature from its Series 9 and Ultra 2 watches if its court appeal fails over a patent dispute with Masimo. That will keep those high-end Apple Watch variants on the market.
Apple Stock
Apple stock fell 2.5% early Tuesday, while Microsoft edged higher.
Apple stock rose 2.6% last week to 185.92, but it's in danger of losing its market cap crown to fellow Dow Jones giant Microsoft for the first time since late 2021.
AAPL stock, which got back above a $3 trillion valuation in December, ended last week at $2.892 trillion. MSFT stock climbed to $2.887 trillion. Microsoft is up 3.3% in 2024, hitting a record high.
Microsoft now has a higher market cap intraday Tuesday.
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