Car price reductions may usher in a boom

Mondo Cars Updated on 2024-03-02

On March 1, Tesla officially released a series of limited-time offers, including 8,000 yuan of existing car insurance subsidies, 2,000 yuan of designated car paint for a limited time *** and a limited-time news of low interest on current car finance.

At Tesla's experience store, the reporter witnessed a scene on March 1: intending car owners who had received the news came to check the vehicle.

A staff member pointed out that taking the 2024 Model Y rear-wheel drive version as an example, taking into account various discounts, applicable car owners can enjoy a comprehensive discount of more than 30,000 yuan. He said: "The current ** is an unprecedented low price. ”

Since the beginning of this year, Tesla has made several adjustments.

On January 12, Tesla adjusted the prices of the Model 3 Y rear-wheel drive version and long-range version, ranging from 6,500 yuan to 15,500 yuan. After the adjustment, the Model 3 has a starting price of 24590,000 yuan, the starting price of the Model Y is 25890,000 yuan.

On February 1, Tesla once again announced that customers who place an order for any Model 3 Y S X model and deliver it by the end of March can enjoy an annual rate as low as 25% off. In addition, customers who place an order to purchase a designated version of Model Y can also enjoy a cash discount of 8,000 yuan.

According to the statistics of the China National Association, the production and sales of new energy vehicles in the country reached 78 in January70,000 and 7290,000 units, an increase of 853% and 788%, with a market share of 299%。A new round of war is bound to stimulate the activity of the automobile sales market again.

In addition to the automotive industry, third-party retailers have also recently slashed Apple's iPhone 15 series phones across the board, with a range of up to thousands of yuan.

The price cut coincides with the eve of International Women's Day on March 8. The reporter found on the relevant e-commerce platform that at least four Apple** mobile phones, including the iPhone 15 and iPhone 15 Pro series, have seen price reductions, ranging from a few hundred yuan to thousands of yuan. Among them, the basic iPhone 15 has dropped by 1,300 yuan to 1,400 yuan, while the price of the best-selling iPhone 15 Pro Max model has been reduced by more than 1,000 yuan.

Apple's iPhone 15 series has only been on the market for five months, but on multiple platforms such as JD.com, Tmall and Pinduoduo, the price cuts have far exceeded expectations. As early as a month after the iPhone 15 series hit the market, these platforms began offering similar discounts, albeit at the time by a relatively small amount.

E-commerce platforms have stepped up their efforts, partly because Apple is also taking price reduction measures itself. Last month, Apple launched a rare iPhone discount of up to 500 yuan on its official **, which was interpreted by the market as "an unusual action", showing Apple's adjustment attitude.

Analysts point out that in the past, Apple has occasionally allowed Chinese partners to offer discounts to stimulate demand. However, in the future, Apple may gradually reduce its support for channel providers to reduce prices. This also reflects the fierce competitive environment that Apple faces in the Chinese market.

**10,000 Fans Incentive Plan

Zhu Jiatao, a senior analyst at Canalys, told reporters: "The first half of the year is usually the off-season for Apple's iPhone, but in China, the peak of Apple's iPhone sales seems to have passed." ”

Last year, after the launch of Apple's iPhone 14 series, some third-party platforms also significantly reduced the price of high-end models**, including the iPhone 14 Pro. At that time, the price reduction was about 10%.

Apple has been elevating its premium models in recent years by widening the technology gap between its flagship high-end model, the iPhone Pro, and its entry-level iPhone. In 2017, Apple's top-of-the-line iPhone model (iPhone X with 256 GB of storage) was priced at $1,150, while in 2022, an iPhone 14 Pro Max model with 14 TB of storage cost up to $1,600, a premium of nearly 40%.

Last year, when analysts questioned the sustainability of this ***, Apple CEO Tim Cook told investors: "Consumers are willing to pay more for what they think is the best." His remarks implied that Apple would continue to introduce luxury models with more new features.

However, in recent years, Apple's innovative products in the field of high-end phones have not stood out. In a report released earlier this year, Canalys noted, "Apple must look for new market growth and ecosystem advantages in the new year to reinvigorate the iPhone business." ”

The market is also watching whether Apple will follow competitors such as Samsung in launching folding phones. Previously, Apple has applied for a number of technology patents related to folding screens. If Apple joins the "folding screen war", it may become a new selling point in the market.

Last year, Apple won the competition against Samsung. According to reports from Canalys and IDC, Apple's smartphone sales will surpass Samsung for the first time in 2023, ranking first in the world. According to data from Canalys, Apple's market share in China's high-end machine market above $800 is stable at more than 80%.

However, there is still uncertainty about whether Apple will be able to maintain its sales champion position this year, especially whether the Chinese market can maintain strong growth. According to Jefferies analysts, iPhone sales in China fell by 30% in the first week of 2024. The company also said that Apple's iPhone sales in China will drop by 3% year-on-year in 2023.

At the beginning of this year, Barclays downgraded Apple's rating on the multiple risks it could face in the future. In addition to sluggish hardware sales, other risks include the possibility that Apple's services business may face heightened regulatory scrutiny challenges.

So far this year, Apple's stock price has been mediocre, unfueled by the AI boom. Compared to the strong gains of other tech giants, Apple's stock price has fallen nearly 6% so far.

Cook said at Apple's shareholder meeting on Wednesday that later this year, Apple will release a specific artificial intelligence plan that is expected to reshape all of Apple's products, including the iPhone.

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