Apple's discounts are boosting iPhone sales in China

Foreign brands sold roughly 3.5 million smartphones in the country last month, according to the latest data from the China Academy of Information and Communications Technology (CAICT), a research firm linked to the Chinese government. That’s up from about 2.3 million units in April 2023, a 52% year-over-year increase.

While the firm doesn’t explicitly mention Apple, the Californian tech giant is the dominant foreign smartphone maker in China’s market. As a result, the overwhelming majority of the increase in foreign smartphone shipments can be attributed to Apple.

Apple stock jumped almost 2% in pre-market trading Tuesday.

April’s strong showing follows Apple’s sold performance in March. The company’s iPhone sales grew 12% in March compared to a year earlier and 37% compared to the first two months of 2024, according to the CAICT.

The improved performance comes as Apple has started offering discounts of up to $318 on some of its smartphones in an eight-day promotion that ends Tuesday. The company had relied on smaller incentives offered in January and February to boost sales as it struggled to match competitors with low prices and new technology.

Rivals like Huawei Technologies, Oppo, and Xiaomi, among other local firms, have been drawing away Chinese customers in recent months. Huawei, especially, has seen a resurgence after releasing its latest smartphone series, the Mate 60 Pro, which helped its profits double in 2023. The Chinese tech giant last month announced its new range of high-end smartphones, the Pura 70 Ultra.

Foreign shipments of smartphones were down 27% during the first quarter of 2024, a loss largely attributed to Apple. The company’s iPhone sales sank almost 10% year-over-year, according to the International Data Corporation.

However, Apple has surprised investors by surpassing expectations for revenue generated in the greater China region during its first quarter of 2024. The company made $16.4 billion, down from $17.8 billion year-over-year, but more than the $15.3 billion expected.

Apple CEO Tim Cook has said iPhone revenue in mainland China grew “on a reported basis” and reaffirmed the company’s commitment to the market. Cook visited Shanghai earlier this year to mark the opening of Apple’s 47th store in China.