Apple (AAPL) Sweetens iPhone Swap in China as Competition Heats Up

Apple (AAPL) is stepping up its game in China by offering bigger trade-in discounts on new iPhones. The deal runs only until June 18, 2025, and it gives customers more value when they swap their old phones for the latest models. Apple’s move comes as local brands like Huawei and others heat up the competition, making China a battleground for smartphone sales.

Why Trade-Ins Are Apple’s Secret Weapon

In a market where price matters as much as features, Apple knows it can’t just rely on brand power. So, it’s making it easier for people to upgrade by boosting trade-in values. Earlier this year, Apple gave discounts of up to 500 yuan (about $68), but now the trade-in offer is even stronger. This means if you have an older iPhone or other smartphone, you’ll get a bigger credit toward a shiny new iPhone.

Why does this matter? Because China’s smartphone market is packed with strong competitors. Apple has been feeling the pressure from Huawei and from other local brands that appeal to budget-conscious buyers looking for stylish phones. Apple’s approach is to ease the cost of upgrading by offering better trade-in deals, hoping that shoppers will stick with its products even when cheaper options are everywhere.

Apple Stock Feels the Heat

But all these deals haven’t stopped Apple’s shares from slipping. The stock has dropped for seven days in a row, closing 0.4% lower at $201.36 on Thursday. Over the last week, the shares lost about 5%, and so far this year, they’ve fallen nearly 20%. This is a much bigger drop than the S&P 500’s (SPX) 1% fall in the same time.

Investors are keeping an eye on whether Apple’s trade-in offer can help boost its performance in China, one of its key markets. While discounts may help in the short term, the company will also need to keep offering new features and strong products to hold customer interest.

Is Apple a Buy, Hold or Sell?

Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, eight Holds and four Sells assigned in the past three months, as indicated by the graphic below. After a 8.14% rally in its share price over the past year, the average AAPL price target of $228.65 per share implies 13.37% upside potential.

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