It is no secret that Apple's sales in China struggled in the first quarter.

The domestic market's top five players, as illustrated below, include Xiaomi, Huawei, OPPO, VIVO, and Apple. Notably, Apple slipped to fifth place, experiencing an 8% decline.

This underperformance is closely tied to the national subsidy policy. The subsidy offers a 15% discount with a cap of RMB 500, but it only applies to phones priced below RMB 6000. Phones priced above this threshold are ineligible.

Apple's flagship models, the iPhone 16 Pro and iPhone 16 Pro Max, even after discounts, remain above the RMB 6000 mark, making them ineligible for the subsidy. As a result, they haven't seen significant price reductions. In contrast, most domestic phones, after a slight price cut to fall below RMB 6000, can enjoy this 15% subsidy, enhancing their cost-effectiveness.

Given this scenario, many have speculated that the iPhone 16 Pro might experience a significant price drop, potentially bringing the entry-level 128GB version down to RMB 6000. After the national subsidy, this would reduce the price to RMB 5500, significantly boosting Apple's competitiveness. At this price point, domestic competitors may feel the heat.

However, some remain skeptical, arguing that a 25% price drop from RMB 7999 to RMB 6000 is unprecedented for Apple.

But before the 618 shopping festival, Apple took action. On JD, the entry-level iPhone 16 Pro is now priced at RMB 5999, making it RMB 5499 after the RMB 500 national subsidy.

User feedback indicates that many netizens, upon seeing this price, commend Apple for delivering on its promise. The price reduction is genuine and straightforward, making it an attractive time to purchase.

Apple's move will undoubtedly exert considerable pressure on other domestic phones in the RMB 5000-6000 range. Despite criticism about Apple's 128GB storage being insufficient and lacking innovation, the iPhone 16 Pro at RMB 5500 offers exceptional value. Its chip performance, video recording capabilities, iOS experience, and strong brand loyalty are unmatched. How will domestic Android phones at this price point respond? Will they follow suit with price reductions or stand firm?