Apple Inc. (NASDAQ:AAPL) has recently announced a new initiative to boost sales in China by offering additional trade-in discounts for new iPhones until June 18, 2025. This move comes as the tech giant faces increasing competition and declining sales in a crucial market.
The company has increased the trade-in value for old iPhones, with the iPhone 15 Pro Max now offering up to 5,700 Chinese yuan, up from the previous 5,625 yuan. Similarly, the trade-in value for the iPhone 15 Pro model has also been raised to up to 4,750 yuan from 4,725 yuan. While these increases may seem relatively minor, they signify Apple’s ongoing efforts to reignite demand in the world’s second-largest economy.
Apple’s market position in China has been challenged by strong local competition from companies like Xiaomi and Huawei. In the first quarter of 2025, Apple’s iPhone shipments in China declined by 8% year-on-year, leading to a decrease in smartphone market share from 15% to 13%, according to Canalys data. To combat this trend, Apple has implemented direct price cuts, including discounts on the iPhone 16 Pro during the Lunar New Year shopping season earlier this year.
Additionally, discussions continue regarding potential special duties on chips and other electronics, despite President Trump’s temporary pause on most tariffs on China. Apple currently manufactures approximately 90% of its iPhones in China through its partner Foxconn. However, the company is exploring diversifying production to India, although Trump has expressed a preference for Apple to manufacture devices in the US.
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In conclusion, Apple’s decision to boost iPhone trade-in values in China reflects its commitment to driving sales in a competitive market. By offering attractive discounts and exploring new production options, the tech giant aims to maintain its foothold in China and continue its growth trajectory.
