Author｜Haotian

The 618 shopping extravaganza hasn't officially kicked off, yet Apple has already sparked a “price war”.

Image Source: JD.com

On May 15, 2026, the iPhone 17 series witnessed substantial price cuts across the board. The standard iPhone 17 model saw a direct price slash of RMB 200, and with national subsidies and trade-in offers, it starts at RMB 4,499. The iPhone 17 Pro experienced a RMB 1,000 price drop, with an additional RMB 1,000 off through trade-in incentives, beginning at RMB 6,999. This promotion extends until June 21, encompassing the entire 618 shopping period.

Thanks to these significant discounts, the iPhone 17 series instantly grabbed consumer attention. According to Jiemian News, searches for “iPhone” on Taobao and Tmall skyrocketed sevenfold compared to normal days within just three days of the price reduction. On Xiaohongshu, numerous users shared their experiences of purchasing the iPhone 17 series at discounted rates.

While Apple has frequently resorted to price cuts to spur sales in recent years, this particular reduction stands out as unusual due to the increasingly challenging market environment Apple faces. Since 2025, memory prices have soared, exerting immense cost pressures on smartphone manufacturers.

Despite the sharp hike in upstream component costs, the iPhone did not follow the trend of price increases like most Android flagship models. Instead, it proactively made “concessions” to the consumer market, largely indicating a gradual weakening of Apple's “pricing power”.

01

iPhone 17 Price Cut Forces Domestic Flagships to Follow Suit

If one had to pick a keyword for the smartphone industry in the first half of 2026, many might opt for “price hikes” over the vague “AI”.

Image Source: TrendForce

Data released by TrendForce reveals that in Q2 2026, smartphone DRAM contract prices continued to surge, with LPDDR4X increasing by 70%-75% and LPDDR5X by 78%-83% quarter-over-quarter, building on the rises seen in Q1.

Against this backdrop, smartphone manufacturers such as OPPO, Vivo, and Honor not only launched new flagship models at higher prices but also raised the prices of existing products. Counterpoint Research noted in a research report that after March 2026, new Chinese smartphone models would witness price increases of 15%-25% compared to models in the same price range in 2025.

During a livestream in mid-May 2026, Xiaomi President Lu Weibing lamented that the pricing of any smartphone today is influenced by the sharp rise in memory costs. “In the second half of this year, especially by the year-end, some domestic flagship bar-style phones may exceed RMB 10,000 in price,” he remarked.

Image Source: Apple

However, unusually, amidst the rising memory prices, Apple, positioned as a premium brand, did not raise prices but instead frequently reduced them. In early 2026, the iPhone Air, just three months after its launch, saw a price cut of RMB 2,000, starting at RMB 5,499 with national subsidies. On the eve of the 618 shopping festival, the entire iPhone 17 series received price reductions.

According to Shijiao Farsight, the reason is that with profit margins far exceeding the industry average, Apple views the current memory price hikes as a historic opportunity to further expand its market influence.

At AWE 2026, Liu Yang, head of the Dreame AURORA smartphone division, revealed, “Currently, about 80% of the global smartphone market's profits are captured by Apple.” Due to its high shipment volumes, Apple can leverage its strong bargaining power to secure memory supplies while relying on its broad profit margins to absorb upstream cost increases internally.

Image Source: Guo Minghao

Ming-Chi Kuo, an analyst at TF International Securities, disclosed that in Q2 2026, iPhone memory cost increases would approach Q1 levels, but Apple's strategy is clear: use strong bargaining power to ensure chip supply, accept cost pressures to capture market share, and later recover losses through service businesses.

Faced with Apple's proactive “concessions,” domestic smartphone manufacturers, despite significant cost pressures, had to follow suit with price reductions to avoid losing consumers. After the iPhone 17 series price cut, the Huawei Mate X7, Mate X6, and Xiaomi 15 Ultra saw price reductions of RMB 1,000, RMB 3,000, and RMB 1,500, respectively.

02

From Specs to Price: Apple's Dominance Weakens

The iPhone 17 series' price cut ahead of the 618 shopping festival, triggering follow-up reductions from multiple smartphone manufacturers, demonstrates that Apple still wields considerable influence in the smartphone industry.

However, focusing on the iPhone's evolution reveals a noticeable weakening of Apple's dominance in the industry.

Once, with its superior product strength and closed-loop ecosystem experience, Apple established a well-structured product lineup. Each September, Apple's new iPhones did not blindly compete with Android flagships on underlying specifications but instead used strict configuration distinctions to segment product lines. Meanwhile, the previous year's iPhones would see price reductions, becoming mid-to-high-end products.

Image Source: IDC

However, due to a lack of innovation, iPhone shipments have declined in recent years. IDC statistics show that from 2023 to 2024, iPhone shipments in the Chinese smartphone market fell by 2.2% and 5.4% year-over-year, ranking first and third, respectively. In Q2 2025, iPhone shipments were only 9.6 million units, down 1.3% year-over-year, ranking fifth.

To enhance market competitiveness, the iPhone 17 series abandoned “incremental” updates and began strengthening underlying configurations. For example, the iPhone Air, with a thickness of just 5.6 millimeters, is touted as the “thinnest iPhone yet,” while the standard iPhone 17 features an LTPO screen supporting 1-120Hz ProMotion variable refresh rates.

Image Source: IDC

By significantly addressing shortcomings in underlying configurations, iPhone shipments returned to growth. IDC data shows that from Q4 2025 to Q1 2026, Apple shipped 16 million and 13.1 million units in the Chinese market, up 21.5% and 33.3% year-over-year, ranking first and second, respectively.

However, with only one annual update, the iPhone once again faced growth challenges starting in February 2026 as domestic flagship models launched one after another.

Shijiao Farsight analyzed sales data for the iPhone 17 series from Weeks 1-19 of 2026, disclosed by tech blogger “RD Observation,” and found that while sales steadily increased, the week-over-week growth rate declined after Week 8, with Week 19 seeing a mere 1.51% increase, far below the roughly 5% growth seen earlier in the year.

Therefore, Apple chose to proactively reduce prices ahead of the 618 shopping festival, hoping to attract more consumers to purchase the iPhone 17 series.

However, as Duan Yongping, founder of BBK and investor, said, “Price cuts indicate a lack of competitive moats.” Today, while proactively competing on underlying specifications and price may temporarily boost the iPhone's market influence, it is unlikely to permanently alleviate Apple's internal anxieties.

For a premium brand that rarely engages in cutthroat competition, price cuts are not merely promotional tactics but signals of weakening market dominance. Over time, Apple's profit margins will not only be squeezed but its premium brand positioning may also waver.

03

Rise of Domestic Flagships: Apple's Advantages No Longer Obvious

As the company that pioneered the smartphone era, Apple's strong pricing power largely stemmed from its ability to provide consumers with a differentiated user experience.

Image Source: Apple

For instance, the iPhone 5s, released in 2013, integrated Touch ID into the Home button, offering a natural and fast recognition experience. At the time, most Android smartphones placed fingerprint sensors on the back, creating a disjointed user experience. The iPhone 6s, released in 2015, featured the Taptic Engine, simulating the mechanical feel of physical buttons, while most Android smartphones used rotation motors, resulting in coarse vibrations.

However, in recent years, as domestic smartphone manufacturers have focused on improving their “internal capabilities,” the iPhone's comparative advantages have become less pronounced, with configurations like imaging, fast charging, and battery life now significantly lagging.

Image Source: Apple

A typical case is the iPhone 17 Pro Max. Although positioned as an imaging flagship, it only features a 48-megapixel periscope telephoto lens with 4x optical zoom, making distant shots prone to distortion. In contrast, recently released domestic imaging flagships mostly support 10x optical zoom and can even pair with teleconverters for ultra-long-distance clear imaging.

Not only do current product configurations have shortcomings, but Apple also appears to lack momentum in deploying new form factors and cutting-edge technologies.

Apple is expected to release its first foldable iPhone in autumn 2026, featuring a horizontal inward fold design with a 7.8-inch inner screen and a 5.5-inch outer screen, replacing Face ID with side-mounted Touch ID.

However, due to the engineering challenges of foldable smartphones, Apple has encountered significant obstacles in developing the foldable iPhone.

Image Source: Shana Digital

In early 2026, tech blogger “Digital Focus” cited sources close to Apple, stating that Apple had purchased and disassembled the OPPO Find N5 for research, creating numerous prototypes internally but finding it difficult to surpass OPPO in screen crease smoothness. In mid-May, “Shana Digital” reported that while Apple had compromised on screen creases, hinge issues arose, with “long-term high-frequency opening and closing reliability consistently failing to meet Apple's quality control standards.”

Furthermore, as AI technology matures, Agents have become a major trend in the tech industry, with many domestic smartphone manufacturers actively “cultivating shrimp.” In contrast, Apple has yet to deploy Agents and has not even integrated its Siri voice assistant with large language models, lacking support for natural language conversations.

As smartphones enter the Agent era of “getting things done,” the iPhone, stuck in the “old era,” is vulnerable to disruption.

Ultimately, as Li Nan, former vice president of Meizu Technology, said, “The iPhone 17 series' current success is mainly due to its surprise attack. But if the Android camp responds aggressively, even if the 17 loses, the 18 or 19 will inevitably be defeated.”

The iPhone 17 series' strategy of “enhanced specs at reduced prices,” while providing temporary relief, exposes Apple's internal fractures.

As competitors continue to invest in cutting-edge technologies, the iPhone's competitive moats are gradually drying up. To retain consumers, Apple has no choice but to lower its stance and compete with domestic smartphone manufacturers on equal footing.

The significance of the iPhone 17 price cut lies not just in the savings of a few thousand yuan but also in signaling Apple's proactive compromise to the market. As the flagship smartphone industry enters an era of inventory competition, without sustained technological leadership, Apple will find it difficult to rely solely on brand premium to remain detached from industry cycles in the long run.

Interactive Topic

What are your thoughts on the iPhone 17 series? Is the current price point appealing to you?

This article is original content from Shijiao Farsight and is prohibited from reproduction without authorization.