Apple (AAPL, Financial) has announced its participation in China's national subsidy program for the first time. The program offers up to a 15% reduction on iPhone, iPad, and Apple Watch purchases, with a maximum subsidy of 500 RMB for individual items priced below 6,000 RMB. Mac purchases are eligible for up to a 20% discount, with subsidies capped at 2,000 RMB. These offers are exclusive to Apple's online store and retail locations in Shanghai and Beijing.
This strategic move addresses previous user dissatisfaction when Apple did not participate in the subsidy program through official channels, leading some consumers to opt for third-party platforms. Now, customers can benefit from both subsidies and direct services such as a 14-day return policy and Genius Bar support.
Despite Apple's entry into the subsidy program, e-commerce platforms like JD.com and Tmall remain competitive with additional discounts and trade-in deals, often surpassing the 2,000 RMB savings. This initiative aims to close the price gap with domestic brands like Huawei, Xiaomi, and OPPO, which have capitalized on subsidy programs to boost sales, especially in the mid-range 4,000-6,000 RMB segment.
