From Price Drops to Active Discounts: Is Apple Struggling to Sell iPhones?
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On January 15, Apple's China website launched a "New Year Limited-Time Offer" promotion. From January 18 to 21, eligible payment methods for specified products can save up to 800 yuan.
Purchasing iPhone 15 Pro, iPhone 15 Pro Max, iPhone 15, iPhone 15 Plus, iPhone 14, iPhone 14 Plus, or iPhone 13 with eligible payment methods can save up to 500 yuan.
Buying 13-inch or 15-inch MacBook Air (M2 chip models) or 13-inch MacBook Air (M1 chip models) with eligible payment methods can save up to 800 yuan.
Additionally, purchasing products like iPad, Apple Watch SE, AirPods (2nd or 3rd generation), Apple Pencil (2nd generation) with eligible payment methods can enjoy varying degrees of discounts.
Behind the price cuts lies a significant decline in sales of Apple's iPhone series.
IDC China senior analyst Guo Tianxiang stated that overall, Apple's official website price reduction is mainly due to the limited appeal of iPhone 15 series upgrades for Chinese consumers. The competitiveness of flagship products from Chinese smartphone brands has improved, not only with Huawei's return but also with Xiaomi's 14 series, vivo's X100 series, and Honor's foldable series, all putting considerable pressure on Apple's market performance.
Analysts from Wall Street investment bank Jefferies reported in a note that iPhone sales in China fell by 30% year-on-year in the first week of 2024. Notably, the iPhone 15 series has been frequently discounted on e-commerce platforms, with even steeper price cuts following the "Double 11" shopping festival. Reports of the iPhone 15 series' prices "plummeting" have been widespread.
It is reported that Apple adjusted the channel prices for the iPhone 15 series at the beginning of 2024, a rare occurrence in the company's history. This suggests that third-party channels and e-commerce platforms may have further room for price adjustments.
Last week, Apple's stock rating was downgraded again. Analysts at Redburn Atlantic believe Apple's stock has limited upside potential in the coming years, downgrading it from "Buy" to "Neutral." This marks the third downgrade of Apple's stock since the start of the new year.
Previously, U.S. investment bank Piper Sandler downgraded Apple from "Overweight" to "Neutral," setting a target price of $205, citing concerns over iPhone inventory levels and peak sales growth. However, the $205 target still implies some upside from Apple's current stock price.
Barclays analysts, led by Tim Long, noted that the iPhone 15's performance has been underwhelming, with sales and specifications falling short of expectations. They also expect the iPhone 16 to follow suit, lacking compelling new features or upgrades.
"Apple's stock has outperformed peers despite missing expectations for most quarters over the past year, but we expect this trend to reverse," Barclays analysts said. They downgraded Apple's stock to "Underweight" and lowered their target price from $161 to $160.