Apple Reduces iPhones, iPads, AirPods, and Mac Prices in China Following VAT Cut

Following a VAT reduction by the Chinese government from 16 to 13 percent, Apple has gone ahead and reduced iPhone, iPad, Macs, and AirPods prices in China. The reduction in prices are extremely modest in nature, though Apple’s reduction is bigger than the 3 percent VAT reduction done by the Chinese government.

Apple took down its online store in China for a few hours yesterday to list the new prices.

Post the price cut, the iPhone XR is available for 6199 RMB in China — down from its original price of 6499 RMB and a reduction of 300 RMB. The iPhone XS and iPhone XS Max see a bigger reduction of 500 RMB and are now available for 8,199 RMB and 9,099 RMB. The recently launched 2nd generation AirPods have also seen their price reduce by 33 RMB to 1,246. Other Apple products have also seen a similar price cut. Again, the price cuts are not hefty and most customers are likely to find better deals with other online retailers in China.

If you brought an Apple product in China in the last 14 days, you can contact Apple Support and get a refund of the excess money you paid.

The reason behind the VAT reduction from the Chinese government is to boost the slowdown in the economy.
Our Take

This price reduction from Apple is unlikely to have any notable effect on iPhone sales in the region. Given the slowdown in iPhone sales in China which led the company to lower its revenue by $15 billion in Q4 2018, Apple was expected to announce a major price cut for its products in the region. However, that did not happen despite Apple rethinking Apple pricing in some international markets due to price fluctuations.

[Via CNBC]

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