Amaya Toman Apple has reduced the prices of several of its products. Discounts occurred in official Chinese e-shops, prices fell by less than six percent. By reducing prices, Apple is reacting to the dramatic drop in sales of its products on the Chinese market, but the discount does not only apply to iPhones – iPads, Macs and even wireless AirPods headphones have also seen price reductions.
The crisis facing Apple in the Chinese market demanded a radical solution. The income of the Cupertino company in China saw a significant drop in the fourth quarter of last year, and the demand for iPhones also decreased dramatically. It was precisely on the Chinese market that the aforementioned decline was most noticeable, and even Tim Cook publicly acknowledged it.
Apple has already reduced the prices of its products at third-party sellers, including Tmall and JD.com. Today's price cut could be in response to the value added tax cut that took effect in China today. The value added tax was reduced from the original sixteen to thirteen percent for sellers like Apple. Discounted products can also be seen on Apple's official website. The iPhone XR, for example, costs 6199 Chinese yuan here, which is a discount of 4,6% compared to the price from the end of March. The prices of the high-end iPhone XS and iPhone XS Max have been reduced by 500 Chinese Yuan respectively.
Apple's customer service says that users who have purchased an Apple product that has been discounted in the last 14 days in China will be reimbursed the difference in price. The market, which includes China, Hong Kong and Taiwan, accounted for fifteen percent of Apple's revenue for the fourth calendar quarter of 2018, according to available statistics. However, Apple's income from the Chinese market fell by almost 5 billion compared to the previous year.
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Source: CNBC
So the only radical step that is needed is the free market. Without it, it won't move.
Point?