Shulou(Shulou.com)11/24 Report--

Is it Apple that can't stand it, or the mobile phone market environment?

Author / IT Times reporter Shen Yibin

Editor / Wang Xin and Sun Yan

Recently, "iPhone14 Pro price reduction of 700 yuan" and other related topics rushed to Weibo hot search, less than half a year of sale of the iPhone14 series ushered in a big price reduction.

After visiting a number of Apple stores and authorized stores in Shanghai, a reporter from the IT Times found that the direct stores still maintained their official website prices and did not reduce their prices; the iPhone14 in the authorized stores all had a drop of 600,000,800 yuan. The previously circulated internal documents of Apple authorized distributor SUNPIE, all versions of iPhone 14 Pro and iPhone 14 Pro Max were reduced by 700 yuan from February 5 to April 1, and the news covering all stores was also confirmed during the visit.

In addition, the most price-sensitive e-commerce platforms such as JD.com and Taobao, as well as the sales channels of the three major operators, also participated in the price reduction, ranging from 600 yuan to 900 yuan. According to the different subsidies for each platform, Meituan reduced the price by 1000 yuan, while pinduoduo reduced the price by as much as 1600 yuan.

Channel insiders said that the current retail price of some models, such as iPhone 14 Pro Max 256G, is close to the purchase price, which is not far from the phenomenon of "batch zero upside down".

The maximum offline price reduction is 800yuan, and the online maximum price reduction is 1600 yuan. On the afternoon of February 13, standing across the street, you can see the crowded Apple store on Nanjing East Road. "our direct store has not reduced its price, and we have not received a notice so far." The salesman said that the starting prices of iPhone 14 Pro and iPhone 14 Pro Max are still 7999 yuan and 8999 yuan.

Subsequently, a reporter from the "IT Times" successively visited five Apple authorized stores, including the North Bund Raffles, Shanghai Jiuguang Center, and Daning International Commercial Plaza. The whole iPhone14 department has been replaced with a brand new price tag, with an average drop of 600,800 yuan. WeChat Mini Programs in the Apple franchise store, but also directly in the home page played a price reduction advertisement.

The reporter found that there are differences in the price reduction of different models in each authorized store. For example, the price of the iPhone 14 Pro, Pro Max and Plus in Shanghai Jiuguang Center Store is reduced by 800yuan, and the price of the standard version model is reduced by 700yuan; the price of the iPhone 14 Pro and Pro Max in Jiangqiao Wanda store is also reduced by 800yuan, while the price of the Plus model and the standard version is reduced by 400yuan and 300yuan respectively.

"this is also the first time I have seen such a big price reduction for Apple." A salesman at Apple's Shanghai Jiuguang Center store said that after receiving the notice on February 5, the price reduction began to be 700 yuan, and there was also a 100 yuan promotion on Valentine's Day, which added up to 800 yuan.

Apple Global Port store staff said that the authorized store is run by dealers, has its own sales strategy, if there is a collective price reduction, it must be officially approved. However, consumers are advised to ask whether the iPhone models they buy are the same as those purchased through Apple's own official channels, supporting 14-day unexplained return and an one-year warranty.

In addition to offline authorized stores to reduce prices, the major e-commerce platforms will not miss such a strong promotion. JD.com, Taobao and other e-commerce platforms all reduced their prices by 800yuan in the form of full discount coupons, while Meituan dropped by 1000 yuan. Pinduoduo has made the greatest price reduction among all e-commerce platforms. Taking iPhone 14 Pro Max as an example, the "10 billion yuan subsidy" of 1400 yuan, coupled with the 200 yuan discount provided by the store, can reach a reduction of 1600 yuan.

"if I had known that the price of (iPhone) 14 had been reduced so much, I would not have been in a hurry to change 13, and now I feel like I am at a loss." In early September 2022, fruit fan Zhou Yi (a pseudonym) spent 7549 yuan on pinduoduo to buy a 256g iPhone13 Pro. He once believed that buying the previous generation of models before the release of Apple's new phones was the most cost-effective, and he thought it would be a "big profit" to win the iPhone13 pro by 1250 yuan cheaper than the official website, but this time the iPhone 14 Pro cut prices, which was cheaper than iPhone13 Pro.

According to authorized stores on the e-commerce platform, the price of the iPhone 14 Pro 256G model remains at about 7499 yuan, which is not only 1400 yuan cheaper than the official website, but also 50 yuan cheaper than the iPhone13 Pro Zhou Yi bought last year.

The channel merchant profit discount, the retail price approaches the purchase price 2022, the iPhone 14 series appears the serious "polarization" since the spontaneous sale. IPhone 14 and iPhone 14 Plus are unpopular with consumers. At the same time, hot sales of iPhone 14 Pro and iPhone 14 Pro Max were temporarily out of stock because of supply chain problems, resulting in iPhone business revenue of $65.775 billion in the fourth quarter, down 8 per cent from a year earlier.

Global mobile phone consumption is in the doldrums, and Apple, which dominates one side, can no longer stand it.

According to data released by market research firm Canalys, iPhone shipped 73.2 million units in the global market in the fourth quarter of 2022, down 11% from the same period last year; in the Chinese market, iPhone shipped 16.4 million units, down 24% from the same period last year. Edison Lee, an analyst at Jefferies, said: "the discount appears to be larger than the 3 per cent or 4 per cent we found in January, showing signs of weak demand."

Picture source: Canalys's strategy of small profits and quick turnover and ensuring volume at price has made the number one brand in the mobile phone market accept the reality. So, what's the effect?

"since the price cut of iPhone 14, sales have increased by nearly 50 per cent compared with the previous month." Wang Ming (a pseudonym), head of an Apple channel business, told the IT Times that Apple had quietly cut prices as early as January this year, when the prices of iPhone 14 and iPhone 14 Plus were reduced by 600 yuan, and in early February, the prices of Pro and Pro Max models also began to decline.

"although sales have gone up, machines that used to earn NT $300 to NT $400 now earn only one or two hundred yuan, which is a small profit and quick turnover." Taking the iPhone 14 Pro Max 256G model as an example, Wang Ming told reporters that before the price reduction, the upset shipping price from channel merchants to agents was about 9500 yuan. Compared with the official website price of 9899 yuan, they could earn about 400 yuan. After the price reduction, the selling price was 9099 yuan, and the shipping reserve price from channel merchants to agents dropped to about 8900 yuan.

The iPhone 14 Pro 256G model has the smallest price difference between wholesale and retail. After reducing the price by 800yuan, the price is 8099 yuan, compared with the channel price of about 7900 yuan, it can only earn more.

Will iPhone 15 smell better than 14? "it's okay to raise the price of iPhone. In fact, Apple has the ability to persuade consumers to spend more money on iPhone." Apple CEO Tim Cook said on the earnings call in the first quarter of 2023 that iPhone has become an "indispensable" part of many people's lives, and users are willing to pay higher fees for a better user experience.

On the one hand is the price reduction storm of iPhone 14, and on the other is Cook's price increase "Declaration". IPhone 15 has become the object of public attention since "in the womb".

According to industry revelations, the iPhone 15 Pro model will bring six exclusive functions. The first thing to bear the brunt is the brand-new gold on the hot search. From the green of iPhone 13 to the dark purple of iPhone 14, color matching has not only become the focus of apple fans, but also become a major selling point of Apple's new machine. According to foreign media reports, the new gold color of iPhone 15 Pro will be lighter than that of iPhone 14 Pro. At the same time, the appearance will be similar to the Apple Watch arc design, further narrowing the phone frame.

Secondly, some models of the iPhone 15 series will use the A17 chip built by 3nm technology, and the new processor will be upgraded based on the A16 bionic chip, with enhanced performance and battery life. In addition, the Lightning interface that has perplexed users for a long time will be replaced with the mainstream Type-C, and its versatility will be enhanced.

Guo Mingyi, an analyst at Tianfeng International, said that the most high-end iPhone 15 series models (iPhone 15 Pro Max or 15 Ultra) in the second half of this year will be equipped with periscope cameras, and the market expects that periscope lenses will be adopted by more iPhone phones in the future, which will become the trend of lens upgrade in 2023-2024.

After years of being questioned by the industry and consumers about the lack of innovation, the burden on iPhone 15 is becoming heavier and heavier.

This article comes from the official account of Wechat: IT Times (ID:vittimes), by Shen Yibin

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