Apple Inc. (AAPL) is facing renewed pressure in the stock market, even as the company ramps up discounts and trade-in incentives to revive iPhone sales in China, its second-largest market. Despite these aggressive promotions, AAPL stock has tracked a notable decline in recent weeks, reflecting persistent investor concerns about Apple’s competitive position and growth prospects in the region.
Apple recently extended its trade-in program for new iPhones in China through mid-June, offering higher values for older models in a bid to attract price-sensitive consumers. The trade-in value for the iPhone 15 Pro Max, for example, was raised to 5,700 yuan, representing a modest increase but signaling Apple’s determination to regain momentum.
These moves come on the heels of earlier direct price cuts in January, when Apple slashed iPhone prices by up to 500 yuan during the Lunar New Year shopping period.
However, these efforts have only partially offset the headwinds Apple faces in China. The company’s smartphone shipments in the country fell by 8% year-over-year in the first quarter of 2025, with its market share dropping from 15% to 13%. Local rivals such as Xiaomi and Huawei continue to erode Apple’s dominance, leveraging competitive pricing and rapid innovation to capture a larger share of the Chinese market.
The broader context for Apple’s stock performance is equally complex. While the company reported a solid 5% year-over-year revenue increase in its latest quarterly results, and services revenue reached an all-time high, Greater China revenue lagged behind expectations.
Apple’s total revenue from the region fell short of analyst estimates, highlighting the challenges of sustaining growth amid intensifying local competition and shifting consumer preferences.
Investor sentiment has also been dampened by muted expectations for Apple’s upcoming Worldwide Developers Conference (WWDC), as the company grapples with delays in rolling out advanced AI features for its devices.
Analysts note that while Apple’s long-term fundamentals remain strong, the immediate outlook is clouded by uncertainty in China and broader concerns about global tech sector volatility.
