With the expected delay in iPhone 12 release... iPhone 11's value drops in China

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Joselgina] As the release of Apple's first 5G smartphone, the iPhone 12, is expected to be delayed, the price of the iPhone 11 has sharply dropped in China, the world's largest smartphone market. Some online malls are offering discounts of up to 270,000 KRW compared to the official selling price.

According to IT media PhoneArena on the 12th (local time), Suning, an online electronics mall in China, is currently selling the iPhone 11 64GB version for 4,999 yuan (about 864,000 KRW). This is a 500 yuan discount compared to the price listed on Apple's official Chinese website. The iPhone 11 Pro Max 64GB version is being sold for 7,499 yuan, 1,600 yuan cheaper. The discount rate is as high as 17.6%.

This price reduction draws more attention as it comes amid a sharp decline in global smartphone demand due to the impact of the novel coronavirus infection (COVID-19), which has greatly increased market uncertainty. Apple, which has a large production base in China, has been hit hard in its supply chain since the outbreak of COVID-19. In particular, while Apple has yet to release a 5G device, Chinese smartphone manufacturers including Huawei have launched numerous 5G models.

PhoneArena reported, "Some analysts believe that Apple's 5G smartphone launch could be delayed until early 2021," adding, "With competitors releasing 5G smartphones one after another, iPhone sales in China are on a declining trend." It was confirmed that in February, when Apple closed 42 Apple Stores in the Greater China region, iPhone shipments in the Chinese market did not even reach 500,000 units.

Currently, not only Suning but also other online malls such as JD.com, Gome, and Dangdang are offering similar discounts on iPhone 11 models. Major foreign media have noted this atmosphere, stating, "Apple operates a single pricing system and is known for not allowing third-party sellers to lower prices." In 2019, smartphone manufacturers intensified competition in the Chinese market, and iPhones were flooded into online malls at discounted prices. At that time, Apple CEO Tim Cook made remarks suggesting that such price reductions helped recover sales in China, attracting attention.

However, it is uncertain whether the price reductions by Chinese online malls will have a positive effect on Apple's sales this time as well. The analysis firm Canalys recently noted that while smartphone manufacturers' sales are recovering as the COVID-19 outbreak in China gradually improves, Apple is an exception. Apple is scheduled to release its Q1 earnings report on the 30th (local time).

This content was produced with the assistance of AI translation services.