Behind Apple's Price Cut: A Dual Setback in Consumer and Capital Markets

On January 15, Apple's official Chinese website surprisingly posted a notice for an upcoming event, the "Chinese New Year Limited-Time Offer," scheduled from January 18 to 21. As part of this promotion, the iPhone 15 series will see a price reduction of ¥500, with certain laptop models seeing a maximum discount of ¥800. Additionally, products like the iPad Pro and iPad Air will also experience corresponding price cuts. Meanwhile, Apple's stock price has fallen by over 6% from its closing high a month ago, and its market value was temporarily surpassed by Microsoft.

Declining iPhone Sales:
Consumer Market: The sales performance of the iPhone 15 series in China has been lackluster, experiencing a 4.5% decline in the first 17 days after its launch compared to the iPhone 14 series. The price reduction may aim to stimulate market demand, especially in the face of strong competition from domestic brands, particularly Huawei.
Capital Market: Analysts suggest that iPhone sales in China have witnessed a year-on-year decline of 30%, causing investors to express concerns about Apple's performance in the consumer market, subsequently impacting the company's stock price.

Bearish Sentiment in the Capital Market:
Consumer Market: Apple is facing multiple challenges, including sluggish sales, a lack of innovation, and intensified competition from rivals. This has led to a relatively tepid response from the market towards its products.
Capital Market: Investment banks are bearish on Apple, suggesting that it may no longer be considered a growth stock. The decline in stock price, coupled with Microsoft temporarily surpassing its market value, reflects investors' apprehensions about Apple's future growth.

Competition and Innovation in the AI Field:
Consumer Market: Mentioning Apple's shortcomings in the AI field, it appears to lag behind in technological innovation, affecting the attractiveness of its products.
Capital Market: Analysts believe that Apple's delayed response may have caused it to lose favor among investors in the capital market, leading to it being listed as a short-selling target, potentially resulting in sluggish revenue growth.

Challenges in the Service Business and Ecosystem:
Capital Market: Investment institutions caution that Apple's service business growth may decelerate, regulatory risks may increase, and the returns from its ecosystem may diminish. These factors could impact Apple's valuation.

In summary, Apple is facing a dual pressure from both consumer and capital markets, prompting the company to take various measures, including price cuts, to maintain market share and address challenges posed by competition and technological innovation.