In a rare move, iPhone 14 Pro and iPhone 14 Pro Max models sold in China are getting price cuts from Apple. This decision could likely stem from the fact that the company is experiencing low smartphone demand in the region and wants to prop up sales or clear out existing inventory before the arrival of the iPhone 15 lineup.

Up to a $118 price cut has been observed on the iPhone 14 Pro and iPhone 14 Pro Max, but no such offer exists for the iPhone 14 or iPhone 14 Plus

Retailers such as JD.com have slashed prices of the iPhone 14 Pro and iPhone 14 Pro Max by 800 yuan, or $118, according to Bloomberg. MacRumors also reports that state carrier China Mobile has begun offering discounts to customers. These price cuts represent 7-9 percent of retail prices and hint that Apple wants to drive sales in the region as much as possible. According to the report, shortly after the price cut was announced, existing stock at some retailers had quickly exhausted.

What is strange about this report is that no discounts were offered on the regular iPhone 14 or iPhone 14 Plus, which were already selling poorly. It appears that Apple might have informed its suppliers to focus on the ‘Pro’ models rather than generating inventory for the cheaper versions, and even with the price cuts observed in China, Apple’s ASP (average selling price) is expected to see an increase.

During Apple’s Q1 2023 earnings call, Tim Cook noted that the company’s revenue would have been better had the supply chain of the iPhone 14 Pro and iPhone 14 Pro Max not been disrupted. Apple was estimated to have lost around $9 billion in revenuedue to this setback, but it still generated $117.2 billion in the quarter. The supply chain has stabilized, but not without Apple losing out on potentially billions, which may have forced the company to start offering discounts.

China is the largest smartphone market when it comes to annual shipments, so it is a key region for Apple to maintain its presence in. In 2022, China saw a year-over-year decrease in shipments of 14 percent, bringing that tally down to 287 million units. Since Apple maintains a healthy market share in the country, the discounts offered on the iPhone 14 Pro and iPhone 14 Pro Max could help maintain that momentum.

News Source: Bloomberg