Apple Inc. (AAPL.US) iPhone 16 not selling well? Chinese online retailers starting discounts early to promote sales.

According to reports, online retailers in China have already lowered prices before the official launch of the new iPhone 16 series by Apple Inc. (AAPL.US). PDD Holdings Inc. Sponsored ADR Class A (PDD.US) started selling the iPhone 16 Plus with 512GB of storage space for 8999 yuan (approximately $1268), which is a 10% discount from the official price of 9999 yuan. At the same time, the 128GB iPhone 16 is being sold at an even larger discount of 11%. PDD Holdings Inc. Sponsored ADR Class A and Alibaba Group Holding Limited Sponsored ADR (BABA.US) on the Taobao platform are offering a 4% discount on the 256GB iPhone 16 Pro Max, reducing the price by 400 yuan to 9599 yuan. Alibaba Group Holding Limited Sponsored ADR's Tmall shopping platform is offering buyers the option of a 24-month installment plan with no interest. The discounts indicate weak demand for Apple Inc.'s new phones in China. China is the world's largest smartphone market and one of the most competitive markets. The Apple Inc. iPhone 16 series will officially go on sale on September 20, but it will not come with the new artificial intelligence service Apple intelligence, which will be launched in the United States next month. Apple Inc. will launch an English version of the artificial intelligence tool in several markets in December, while versions in other languages including Chinese will be released next year. Reports on Monday estimated that the pre-order sales of the iPhone 16 series during the first weekend will be around 37 million units, a decrease of about 12.7% compared to the first weekend sales of the iPhone 15 series last year. Apple Inc. has been facing fierce competition from Chinese competitors in the smartphone market in China, such as the resurgent Huawei. According to research firm Canalys, Huawei's smartphone shipments in China increased by 41% year-on-year in the second quarter of 2024, while Apple Inc.'s iPhone shipments decreased by about two percentage points during the same period.