Why did iPhone sales fall in China despite discounts?

Intense competition from local players like Huawei and Xiaomi, along with China's economic slowdown, impacted sales and made discounts necessary to maintain market share.

What is the impact of Apple's discounts on its profits?

Heavy discounts could pressure Apple's profit margins in China, potentially impacting overall profitability if the strategy continues.

Apple Slashes iPhone Prices but Sales Still Fall in China

Apple regained the No. 2 position in China's smartphone market during the 2026 618 shopping festival after offering steep discounts on its latest iPhone lineup. However, analysts said the gains came at the cost of pricing, and sales still fell.

July 8, 2026

2 min read

Source: Benzinga

Apple Inc. (NASDAQ: AAPL) regained the No. 2 position in China's smartphone market during the 2026 618 shopping festival after offering steep discounts on its latest iPhone lineup. However, analysts said the gains came at the cost of pricing, and sales still declined overall.

Details

According to a report from Benzinga, Apple offered steep discounts on iPhones during the 618 shopping festival, one of China's largest shopping events. The discounts helped the company regain the No. 2 market position, but at the expense of profit margins.

Context

Apple faces intense competition in China from local players like Huawei and Xiaomi. Additionally, China's economic slowdown has impacted consumer spending, forcing Apple to adopt a competitive pricing strategy to maintain market share.

What This Means for Investors

While regaining the No. 2 spot is positive, relying on heavy discounts could pressure Apple's profit margins in China. Investors should watch whether the company can sustain market share without sacrificing profitability.

Frequently Asked Questions

The 618 shopping festival is a major shopping event in China similar to Black Friday, where companies offer steep discounts to attract consumers.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.