'iPhone Discounts Spread In China For Lunar New Year As Sales Dip' - Nikkei Asia
Portfolio Pulse from Benzinga Newsdesk
iPhone prices are being reduced in China ahead of the Lunar New Year due to declining sales and increased competition from domestic brands like Huawei. Alibaba's Tmall and JD.com are offering significant discounts on iPhones, with Tmall's promotion running until January 31. Apple is also providing discounts at its physical stores and website in China, though less steep than the online retailers. iPhone shipments in China dropped by 4% year-on-year for Q3 2023, and sales in the first week of 2024 fell by approximately 30% compared to the previous year.
January 18, 2024 | 4:40 pm
News sentiment analysis
Sort by:
Descending
NEUTRAL IMPACT
The iPhone's price cuts in China, a significant market, indicate a competitive environment that could affect the performance of Chinese market-focused ETFs like FXI.
While the news directly pertains to Apple, the broader implications for the Chinese market and consumer electronics sector could have a neutral impact on ETFs like FXI that track the Chinese market.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Apple is discounting iPhones in China due to decreased sales and stiff competition from domestic brands, with shipments down 4% YoY for Q3 2023 and a 30% sales drop in the first week of 2024.
The reported sales dip and increased competition in a key market like China could negatively impact investor sentiment towards AAPL in the short term, potentially leading to a decrease in stock price.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90