Apple increases iPhone trade-in prices in China in an effort to boost demand in a crucial market

 

In an effort to boost demand in a vital market, Apple increased the amount of money consumers in China may receive for their next iPhone by trading in their old model on Friday.

The trade-in value of the iPhone 15 Pro Max has increased from 5,625 Chinese yuan to 5,700 Chinese yuan ($791). For comparison, the price of a brand-new iPhone 15 Pro Max in China is 7,999 yuan. Trade-in value for the iPhone 15 Pro model has increased from 4,725 to 4,750 yuan.

Increases in trade-in value are also present in other models.

Over the past year, Apple has tried to provide discounts, particularly during Chinese holidays. Even while the most recent increases are modest, they show Apple's continued efforts to boost sales in the second-largest economy in the world, where it has seen a decline in market share and sales due to fiercer competition from regional rivals.

According to Canalys, Apple's share of the Chinese smartphone market fell from 15% to 13% in the first quarter of this year, while the company's exports to China plummeted 8% year over year. This month, Apple also revealed a modest decline in sales on an annual basis in its Greater China market, which includes Taiwan and Hong Kong.

However, Apple's problems in China extend beyond sales and include concerns about its products and supply chain. The question of whether semiconductors and other devices should be subject to a special duty is still up for debate, even though U.S. President Donald Trump has temporarily suspended the majority of tariffs on China.

Trump has expressed disapproval of Apple's plans to shift more production to India, even though the company now produces 90% of its iPhones in China through Foxconn, a manufacturing partner. This month, the White House leader claimed to have told Tim Cook, the CEO of Apple, that he would prefer that the business manufacture its iPhones in the United States rather than in India.

The two largest rivals of Apple are Xiaomi and Huawei, the latter of which has experienced a remarkable comeback in its domestic market in the past 17 months as a result of aggressive new device launches and processor advancements.

In order to directly compete with Apple, Xiaomi, which has the largest market share in China during the first quarter, has been increasing its presence in the high-end gadget market. Few businesses worldwide have been able to successfully introduce a smartphone with an in-house-developed chip, like the Xiaomi 15S Pro, which was released on Thursday.

In an effort to compete with Apple and Huawei, Xiaomi has also pledged to spending around $7 billion on semiconductor development over the next ten years.