Adapted by:
Ricardo Aguilar
WriterMobile tech writer and analyst. I studied Psychology, but I've been working in the consumer tech field for the last 10 years. Interested in motor projects and new forms of mobility.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
Apple’s approach to discounts in the West differs significantly from that of most of its competitors, representing an almost philosophical stance. The retail prices of its products remain largely unchanged throughout their life cycles. There are no bundled offers, such as iPhones with headphones, discount vouchers, and promotional launch deals. Instead, there’s simply a product with a fixed price.
This strategy is crucial for maintaining its profit margins. However, it’s not working in Asia. Apple has had to adapt in China to mitigate its declining market presence.
What happened. For the first time, Apple has implemented a subsidy policy for electronic products through its primary distribution channels. This means that products on Apple’s own website and in its stores are now being offered at discounts of up to $278.
The subsidy applies to all major products, including the iPhone, iPad, Apple Watch, and Mac. This move directly addresses a pressing need for Apple in China: preventing a significant drop in sales.
Why this matters. Previously, Apple had only used a subsidy policy through third-party distributors such as JD.com and Tmall. This strategy aimed to boost sales of key products like the iPhone while maintaining the retail price in its main sales channels.
Apple’s decision to offer discounts on its most visible and direct platforms is a response to a crisis in the Chinese market, where domestic competitors threaten to push it out of the top five brands.
No surprises. In early 2025, the company broke its longstanding policy by lowering the price of the iPhone in China just six months after its launch. This surprising move reflects the company’s effort to maintain market share in a crucial market.
Despite its strong brand reputation, Apple is willing to make certain sacrifices to remain competitive in China. Its shipments dropped by 9% year-on-year, making it the only company among the top five to lose market share.
Between 2023 and 2025, Apple experienced declining sales in China, falling from the top manufacturer in the country to struggling to stay in the top five. Competitors such as Huawei and Xiaomi are competing for the number one position. Other rivals, including Honor, OPPO, and Vivo, are approaching the 15% market share threshold, threatening Apple’s standing in the industry.
Context. In his book Apple in China: The Capture of the World’s Greatest Company, McGee discusses how the iPhone became a status symbol in China. Apple adapted to the local ecosystem remarkably well. It also managed to become the top seller in a market where it had invested in local talent and infrastructure for years.
However, China has long sought technological independence, a goal that has intensified in light of recent tariff tensions with the U.S. Huawei has become a cornerstone of the Chinese tech industry. Over the last two years, the country has rallied behind it, resulting in soaring sales figures and a seemingly unstoppable upward trend in mobile phone sales.
Not enough. China’s subsidy policy complicates matters further by providing discounts of up to 15% for products priced under $840 and up to 20% for products under $1,400. This could help boost sales of essential products such as the iPhone 15 and 16.
Despite these potential advantages, the growth of rivals like Huawei appears relentless, especially as geopolitical tensions continue to bolster national support for the Chinese manufacturer.
Images | Xataka | Apple
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