In China, the largest market of smartphones in the world, the latest iPhone 16 has suddenly started selling at discounts of up to 11%, even before its official launch. The lack of built-in AI in Apple's new smartphones has cooled demand from Chinese shoppers, so China's biggest online retailers, including Pinduoduo and Taobao, are offering significant discounts on Apple's flagship devices.
Pinduoduo, owned by PDD Holdings and one of the country's most popular e-commerce platforms, is offering the iPhone 16 Plus with 512GB storage for 8,999 yuan ($1,268). This is 10% lower than the official price of 9,999 yuan. The iPhone 16 with 128GB storage is on sale at an 11% discount, the biggest price cut in the range.
Other major market players are also involved in the price competition. Pinduoduo and Taobao (the latter owned by Alibaba Group Holding) are offering a 4% discount on the 256GB iPhone 16 Pro Max, reducing its price by 400 yuan to 9,599 yuan. Tmall, another Alibaba platform, offers 24-month interest-free installment plans. It should be noted that Alibaba owns the South China Morning Post, the source of this information.
Such discounts on Apple's flagship devices show low demand for the latest iPhones in the Middle Kingdom, a key market for the world's most valuable company. The iPhone 16, which will go on sale on Friday, is not yet equipped with AI features, which are considered the main advantage of modern smartphones.
The lack of this key innovation could have a significant impact on sales given the highly competitive Chinese smartphone market. The situation is aggravated by the activity of Huawei, which recently introduced the new Mate XT smartphone.