Apple has cut the prices on multiple devices in China. Prices on everything from iPhones and iPads to Macs and AirPods have been reduced by up to 6 percent.
The slashed prices comes a few months after Apple pinned declining revenue on lower than expected sales in China. Greater China, including Hong Kong and Taiwan, accounts for around 15 percent of Apple’s revenue.
However, in the company’s most recently reported quarter, China revenue of $13.17 billion was down close $5 billion from one year earlier. Overall, iPhone sales in China dropped 13 percent in 2018.
Will this help?
Whether the price cuts will help turn things around remains to be seen. This is the second time this year that Apple products have been reduced in China. Previously, third-party sellers in the country, such as Tmall and JD.com, cut their prices.
The new price for an entry level iPhone XR on Apple’s China website stands at 6199RMB ($923.6). That’s cheaper than the 6499RMB ($968.29) it was listed as at the end of March. Both the iPhone XS and iPhone XS Max got a 500RMB ($75) price cut as a result of the reduction.
CNBC suggests that part of the reason may be in response to a new value-added tax cut in China. The new rule, which went into effect today, means that manufacturers get their value-added tax reduced from 16 percent to 13 percent. In other words, Apple pockets a comparable amount of money, but passes the savings onto consumers.