In China,there is an undergoing competition of discount as the two major phone companies set to attract customers.
This has become a trend in China. What I mean is, there is now a constant decrease in price in form of discounts to attract customers.
Huawei is a Chinese multinational conglomerate technological corporation. The company design, develops and sells telecommunications equipment, solar rooftop device, electronic car amongst others.
Apple is known as the largest technology company. Their products is well known and well accepted all around the world.
It is a shock however that the largest technology company was challenged by Huawei. In August 2024, Huawei had surpassed Apple in smartphone sales at China. This was the first time this had happened in almost 4 years.
Apple decided to give huge discount on their product giving a discount of as much as 500 yuan ($68.50, £55.30).
Huawei responded to this by giving a discount of as much as 20% on their expensive mobile devices.
This approach is meant to somehow lure the consumers to spend. Consumers are hesitant to spend as a result of the country’s economic challenge.
“Apple’s strategy has changed to adapt to the change in Chinese consumers’ shopping behaviour,” said Will Wong, a senior research manager for market intelligence firm International Data Corporation (IDC).
“The value-seeking trend has made price discounts more attractive to consumers. Apple may fall behind other competitors if it doesn’t adopt such a pricing strategy.”
We’ve seen market competition increase with almost everyone launching a flagship last quarter,” said Ivan Lam, a senior analyst at Counterpoint Research.
I want to know what you think about all of this?
I commend China citizens and immigrants for standing by their own local brand. I love that they support but di not do all of that blindly. They still gave room for a foreign company. It feels like a good time to be in China. Imagine getting expensive mobile devices for lower prices. I would probably get more than one.
The behaviour of Consumers is commendable. The two companies are constantly on their toes trying to make large sales.
So what is your point of view? Should I do team Apple and Team Huawei?
