In the smartphone industry, no one can predict which company is going to suffer and will have to face lower demand for its gadgets, but as of now, that company seems to be Apple. Because according to recent reports which state the Chinese retailers are selling newly launched iPhone XR, iPhone XS Max at discounted prices because they think these smartphones are not worth it. A few days ago Apple predicted a lower sell of its newly launched iPhones in the US and overseas market, the effect of this past projection is happening china because retailers are finding very much hard to iPhones. There are various reasons why there’s so much lower demand for Apple products especially smartphone in the Chinese market, but experts think Apple’s rival Huawei which is a domestic company is offering great features at lower prices. Huawei had already faced lots of difficulties because of the trade war issues despite this it’s making good progress.
The report further says that the top retail company in China named Suning has noted that the newly launched iPhones are worth its prices since it does not offer any innovative features. This Chinese retailer has decided to sell a 128GB version of iPhone XR at the cost of 6999 Yuan ($1036) to 5799 Yuan ($858), in other words, retailers are offering iPhones at more than 20 percent discount to customers. Many retailers are still earning a marginal amount of profit by selling these discounted iPhones; however, it’s not enough for the long term.
However, the interesting thing which one can observe is that Apple’s 512GB iPhone XS Max which cost $1499 in the US is selling at the discounted price of 12799 Yuan or $1900 in the Chinese market. Even though Apple is telling the reason behind such an increase in rate is a trade war, but in reality, it’s not true. Lower the demand for iPhones has caused this problem, and that’s why the company is selling its smartphones at higher prices in China.