Apple Stock Soars 6.63% on iPhone Price Cuts

On May 12, 2025, Apple's stock rose by 6.63% in pre-market trading, reflecting investor optimism and market sentiment towards the tech giant.

Apple has recently announced significant price cuts for its iPhone 16 series, with reductions exceeding 1,000 yuan. This move comes as the company faces intense competition from local brands like Huawei, which has impacted iPhone sales. Market research firm Canalys reported that Apple's smartphone shipments in China dropped by 25% in the fourth quarter of 2024, falling to 13.1 million units. Additionally, Apple's AI functionality in China is limited, further straining its high-end market performance.

Apple's aggressive pricing strategy is a response to the market challenges it faces. The company has reduced prices for the iPhone 16 Pro Max by 1,313 yuan and the iPhone 16 Pro by up to 1,445 yuan. These discounts are part of a broader strategy to boost sales ahead of the upcoming "6·18" promotional event. Despite these efforts, Apple's market share in China's high-end smartphone segment has been declining, with local brands like Huawei and Xiaomi gaining ground.

Looking ahead, Apple is set to introduce its first foldable iPhone, which is expected to launch in the second half of 2026. This new device is anticipated to feature an 8-inch display when unfolded and a 5.7-inch display when folded, with a thickness of just 4.5 mm when unfolded and 9 mm when folded. The foldable iPhone is expected to start at a price of $2,100 to $2,300, targeting high-end consumers. Analysts predict that the foldable iPhone could capture 30% of the high-end market share in its first year, potentially revitalizing Apple's position in the premium smartphone segment.