Jefferies uncovers increased iPhone discounts in China versus 2024

Jefferies says the firm has observed an increase in discounts versus last year across both iPhone and Android in China. Tmall has offered 15%-25% discounts on Apple’s (AAPL) iPhone one week earlier than last year, driving 50% year-over-year volume growth, but only 8% growth versus the first week of discount in 2024. For Android, discounts in China for most flagship models rose double-digit percent year-over-year, reflecting Jefferies’ prior view of high inventories, the analyst tells investors in a research note. The firm believes the smartphone outlook “remains muted given limited innovations.” Jefferies thinks Apple tried to drive volume growth by launching 618 shopping festival discounts one week earlier than last year.