BEIJING: Apple has drastically cut prices of iPhone 14 models by up to $125 (850 yuan) in China to boost sales after it reported revenue decline in the holiday quarter, the media reported on Tuesday.
According to South China Morning Post, Apple's online stores on e-commerce platform JD.com showed a markdown of 800 yuan for iPhone 14 Pro and Pro Max models, with an additional 50 yuan off if the buyer became a member of the online store.
That works out to a 10.6 per cent discount on the 7,999 yuan price of the 128-GB iPhone 14 Pro. Retail stores are also offering price cuts ranging from 600 to 800 yuan on most popular iPhone 14 models.
"Local Shenzhen retail chain Sundan offered a 650-yuan price cut and has run out of inventory for both the Pro and Pro Max models with large storage," the report said, quoting an employee. However, the prices of iPhone 14 models remained unchanged on Apple's official website and offline stores in China. Apple reported $65.8 billion in revenue for iPhones in the holiday quarter, down 8 per cent (year-over-year).
However, on a constant currency basis, iPhone revenue was roughly flat. Apple faced supply chain disruptions in October and November as China faced Covid surge and protests erupted at its key supplier Foxconn's main factory in the country.
Apple CEO Tim Cook said that Covid-related challenges "significantly impacted the supply of iPhone 14 Pro and iPhone 14 Pro Max and lasted through most of December". "Because of these constraints, we had significantly less iPhone 14 Pro and iPhone 14 Pro Max supply than we planned, causing ship times to extend far beyond what we had anticipated," he said during the company's earnings call.
Cook said that as a result of a challenging environment, "our revenue was down 5 per cent year over year".
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