Every major retailer, including Samsung and Google, provides discounts or promotions on their latest devices. However, then there’s Apple. This approach of acting as if they are too unique to utilize standard marketing strategies may have been effective in the past, but it is no longer sufficient.
No lessons were learned in China last year.
At times, the most straightforward solutions are the most effective.
Apple doesn’t necessarily have to introduce flashy new features like the Camera Control button or overly highlight the AI capabilities of the iPhone 16 to regain its cool factor. Instead, it should focus on making its phones competitive with other top devices of 2024.
A straightforward discount could achieve this, and Apple is well aware of that. After all, this strategy was employed by retailers in China and by Apple itself, leading to a rapid 12 percent increase in sales in one of its key markets.
What is preventing Apple from reducing the price of the iPhone 16?
Apple tends to put its own twist on features, expecting consumers to view long-established functionalities as fresh and innovative.
A prime example of this is Apple Intelligence, the company’s suite of AI features. While AI capabilities have been available on Android devices for over a year, Apple Intelligence lacks the excitement it may have generated last year.
Additionally, the new phones will launch without Apple Intelligence, with the initial features expected to be released next month.
Early reports indicate that demand for the iPhone 16 series is weak, with sales during the opening weekend down 12 percent compared to the previous year.
Although this alone doesn’t definitively indicate that the iPhone 16 is underperforming relative to the iPhone 15—which also had a lackluster performance—it is evident that new iPhones are no longer generating the same buzz as they used to. In August,
Xiaomi surpassed Apple to become the second-largest smartphone manufacturer globally.
While Apple is likely to reclaim that position this month, dropping from second to third place should raise concerns. It’s uncommon for Apple’s sales to decline sufficiently to lose its second-place status just a month before new iPhones are unveiled.
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Retailers in China are already responding by offering discounts of up to 11 percent on the iPhone 16, and the new phones are also priced lower than the iPhone 15 in markets like India and Australia due to various macroeconomic factors.
Apple should reduce prices globally to boost sales.
Apple’s purported production plans indicate that the company does not anticipate the iPhone 16 to outperform the iPhone 15 in sales. Early reports suggest a potential double-digit drop in demand for the Pro models, and with the earliest availability of Apple Intelligence in China not expected until 2025, the outlook in that market is likely to be bleak.
Apple faces a choice: it can either maintain its stance that offering discounts is unworthy and continue to face significant challenges, or it can change its approach and extend discounts beyond China.
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