Third party retailers in China are offering discounts of as much as 10% on Apple’s iPhone 14 Pro and flagship iPhone 14 Pro Max.
Electronics vendors JD.Com Inc and Suning are currently selling the iPhone 14 Pro basic model for 7,199 yuan ($1,062), checks of JD.com’s app and Suning’s website showed. That is 800 yuan cheaper than the standard price on Apple’s official China website.
A number of other authorised Apple third party sellers are offering similar discounts on the iPhone 14 pro and Pro Max, Reuters checks of promotions on social media showed.
“The return of price cut even for the best-selling iPhone 14 models is not a good sign for demand,” Jeffries analyst Edison Lee wrote in a note to clients…
Apple will occasionally allow partner vendors in China to offer discounts on its phones to spur demand.
MacDailyNews Take: Good, more high-end smartphone market share for Apple in China.
Any “analyst” telling you this is a bad thing – cough, Jeffries’ Edison Lee, cough – is either incompetent or lying.
For iPhone, we expect our March quarter year-over-year revenue performance to accelerate relative to the December quarter year-over-year revenue performance. – y”Apple CFO Luca Maestri, February 2, 2023
Company gross margin was 43%, up 70 basis points from last quarter due to leverage and favorable mix, partially offset by foreign exchange. Products gross margin was 37%, up 240 basis points sequentially. Services gross margin was 70.8%, up 30 basis points sequentially. Apple expects March quarter (Q223) gross margin to be between 43.5% and 44.5%.
Exceedingly strong margins like this give Apple room to maneuver through any recession that may arrive due to continued inflation and interest rate hikes to combat them. This margin headroom that Apple’s rivals simply do not have bodes well for Apple taking even more market share from the Mac, iPad, and iPhone knockoff peddlers of the world. — MacDailyNews, February 3, 2023
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