On the same day China’s government cut value-added taxes by a modest 3%, Apple today slashed the Chinese prices on some of its key products by nearly 6%. Initially reported by CNBC, the price drops are the latest in a series of measures meant to reposition Apple’s iPhone and computer lineup for growth in the challenging market.
Historically, Apple’s attenuation to changing currency conversion and tax rates has varied on a case-by-case basis. It almost always makes quick adjustments when local taxes jump or fall sharply, and sometimes matches exchange rate changes. But in January, the company signaled that it was particularly concerned about its prices in China, where sales all but collapsed late last year, and would be responding promptly to make its products more affordable.
Under the new pricing scheme, Apple is now charging 6,199 Chinese yuan for the base model iPhone XR, down 300 yuan or 4.6% from its 6,499 yuan price last week. By comparison, the iPhone XS and XS Max each saw steeper cuts of 500 yuan, while iPads and iMacs generally saw smaller price drops.
While Apple’s prices across the world have recently been the subject of considerable discussion and debate, the company has sought to target reductions at particularly price-sensitive developing markets. Projects are also underway in India to produce iPhones within the country, enabling Apple to avoid the country’s steep domestic taxes on imported devices.
Apple is offering refunds for the price differences to any customer who made a purchase in China within the last 14 days. Affected customers can contact Apple customer service for refunds.