Apple reduced prices of its iPhones, iPads and other products in China following a move by the central government to lower value-added tax (VAT) on 1 April, Reuters reported.
With the country’s economy slowing due to a trade war with the US, the government announced plans to lower VAT by 3 per cent to generate up to CNY2 trillion ($298 billion) in tax savings this year to stimulate growth.
CNN reported the price of some iPhone models was cut by more than the 3 per cent tax relief.
The 64GB iPhone XS is now priced at CNY8,199, a reduction of CNY500 or 5.8 per cent, while the iPhone XR price was lowered by CNY300 (4.6 per cent).
Apple has taken steps to revive flagging sales in China after weakness in the country dragged overall revenue down 5 per cent year-on-year in the three months to 29 December.
Greater China accounted for 15.6 per cent of the company’s total revenue in the quarter, down from 20.3 per cent in the comparable period of 2017.
In February Apple teamed with payment giant Alipay to offer consumers in China interest-free financing for its iPhones and other products.Subscribe to our daily newsletter Back