Re­tail­ers slash iPhone prices after Ap­ple sales warn­ing

Daily Messenger - - Biz -

SHANG­HAI: Sev­eral Chi­nese elec­tron­ics re­tail­ers in­clud­ing Alibaba-backed Sun­ing and have slashed iPhone prices this week, after Ap­ple re­cently blamed poor sales of the smart­phone in the coun­try for a rare rev­enue warn­ing.

The dis­count­ing, as steep as $118 (92.50 pounds) for the re­cently launched 64GB iPhone XR, is the lat­est sign that Ap­ple’s weak hol­i­day sales in China may have ex­tended to the cur­rent quar­ter.

The price cuts on iPhones by Chi­nese re­tail­ers be­gan in the mid­dle of this week, with at least six of­fer­ing pro­mo­tions this week­end, ac­cord­ing to checks done by Reuters.

Ap­ple did not re­spond to re­quests for com­ment. Prices for iPhones sold through its Chi­nese web­site re­mained un­changed.

Such wide­spread price cuts are not un­com­mon around shop­ping fes­ti­vals like Sin­gle’s Day in Novem­ber, but these cuts stand out as they af­fect Ap­ple’s lat­est XS and XR mod­els that were re­leased only months ago, said Mo Jia, a Canalys an­a­lyst who tracks China’s smart­phone in­dus­try.

Jia be­lieves Ap­ple it­self could have low­ered prices of the phones it ships to dis­trib­u­tors, or that dis­trib­u­tors may have slashed rates in or­der to move more units.

“It’s pos­si­ble Ap­ple wants to test the mar­ket’s feed­back if it brings down the chan­nel prices. Or, Ap­ple might be un­der pres­sure to clean out its stock of iPhones,” he said. Ap­ple has been trail­ing lo­cal com­peti­tors such as Huawei Tech­nolo­gies Co Ltd [HWT.UL] that of­fer cheaper op­tions in China, home to the world’s big­gest smart­phone mar­ket in terms of ship­ment vol­ume.

Last week, Ap­ple is­sued its first rev­enue warn­ing in nearly 12 years, cit­ing poor Chi­nese de­mand, send­ing its shares down 10 per­cent, their big­gest in­tra-day fall in six years.

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