Apple and Huawei are offering rare discounts on their high-end smartphones in China as they face intensifying competition from local brands and grapple with a cautious consumer market.

Apple's four-day promotion, starting today, includes discounts of up to 500 yuan ($68.50, £55.30) on its latest iPhone models and other devices. Notably, the flagship iPhone 16 Pro, with a starting price of 7,999 yuan, and the iPhone 16 Pro Max, priced at 9,999 yuan, are among the discounted products.

Huawei, meanwhile, has reduced prices on its premium smartphones by as much as 20%, signaling an aggressive push to capture a larger market share.

The discounts reflect a broader trend of businesses in China offering deals to stimulate spending amid the country's economic slowdown. Chinese consumers have shown hesitancy in making large purchases, prompting both foreign and domestic companies to adapt their pricing strategies.

Will Wong, a senior research manager at International Data Corporation (IDC), noted, "Apple's strategy has changed to adapt to the shift in Chinese consumers' shopping behavior. The value-seeking trend has made price discounts more attractive. Without such adjustments, Apple risks falling behind competitors."

The competition in China's smartphone market has intensified, with local brands like Vivo and Xiaomi gaining traction. According to IDC, Vivo became the best-selling smartphone brand in the third quarter of 2024, achieving a sales increase of over 20%. In contrast, Apple’s sales dipped by 0.3%, while Huawei saw a surge of more than 40% during the same period.

Huawei's resurgence in the premium smartphone segment, coupled with its launch of advanced new devices despite ongoing US restrictions, has boosted its market presence. "Market competition has increased significantly, with almost all major players launching flagship models recently," said Ivan Lam, a senior analyst at Counterpoint Research.

To bolster domestic consumption, the Chinese government expanded its trade-in program on Friday to include mobile phones, tablets, smartwatches, and fitness bands. The initiative, initially focused on cars and household appliances, aims to encourage consumers to upgrade their devices.

As the Lunar New Year approaches at the end of January, both Apple and Huawei are positioning themselves to capture consumer interest during this peak shopping season. The outcome of these discounts may shape their strategies in China for the year ahead.