Apple this week lowered the price on a number of key hardware lines in China, including AirPods, Macs, iPads and, most notably, the iPhone. The move, noted by CNBC, is believed to be the direct result of a 3 percent tax cut that took effect in the country yesterday.
In many cases, however, the impacted products have dropped by even more, including a 500 yuan ($74) price cut to the iPhone XS, marking a nearly 6 percent drop for the company’s latest flagship.
Along with an adjustment for tax rates, the drop is likely also due, in part, to a lagging demand for products like the iPhone in the world’s largest smartphone market. Early this year, Apple blamed lower than expected earnings on weak demand for the iPhone in China.
The handset’s revenue dropped 15 percent year-over-year in Q1, with China taking center stage. Among the factors are slowed economic growth in the country and flagging global smartphone sales, as users upgrade their devices less frequently.
Apple is also facing increased global competition from Chinese manufacturers like Huawei, which has quickly been rising the sales ranks to be a top competitor alongside the iPhone and Samsung devices.