Apple is discounting its latest iPhone by up to 500 yuan, or about $70, on its official website in China. The cut is roughly equal to 5% of the cost of an iPhone Pro Max 256GB model in mainland China. The three-day discount, which will run from Jan. 18 to 21, is marketed as a sale attached to the Lunar New Year, which falls in early February. 

“It’s no surprise to see Apple launching price discounts for its latest iPhone 15 series, especially since a similar promotion was seen early last year and it helped to stimulate some demand,” Will Wong, a senior research manager at market research firm IDC, says. 

In January 2023, authorized retailers offered discounts of up to 800 yuan on the iPhone 14, then the top-of-the-line model. Those discounts came after a year-long slump in smartphone demand: Chinese shoppers bought 285.8 million smartphones in 2022, down 13.2% from the year before. It was the first time in a decade that smartphone shipments in China fell below 300 million, according to IDC.

Apple is facing stiff competition from Chinese competitors. The iPhone 15 underperformed in its first 17 days of sale compared to the iPhone 14, according to data from Counterpoint Research. The research firm’s latest report shows a continuous decline of Apple shipments since Q4 2022, with market share taken by local brands Huawei and Honor.

Retailers on Chinese e-commerce platforms were discounting the iPhone 15 just a month after its release, ahead of China’s “Singles Day”, the Nov. 11 shopping festival.

“Apple’s share is being challenged primarily by Huawei at the premium end of the market but also across the mid-high range in recent months from other Chinese competitors,” says Ivan Lam, a senior analyst at Counterpoint Research. “These mid-to-high end devices are not just competitively priced, starting at around 3,999 RMB, but also boast features akin to those found in premium smartphones,” Lam adds.

Perhaps the most prominent iPhone competitor is the Huawei Mate 60, which features an advanced 7-nanometer processor and was highly celebrated by state media during its launch. The “buzz” around the Mate 60 brought challenges to Apple and the iPhone, Wong notes. 

Apple’s net sales in China for its fiscal 2023, which ended Sept. 30, was down 2% from the year before. The U.S. and China were the only two countries that each accounted for more than 10% of Apple’s net sales in 2021, 2022, and 2023. 

Apple is also offering discounts on other products during the Jan. 18-21 sale, including an 800 yuan ($112) discount on a MacBook Air.