Apple along with other consumer brands lowered prices to their products in China on Monday as a cut in the country’s value-added tax (VAT) rate came into effect.
Price tags for products listed on the Apple’s China website were reduced on Monday afternoon, including a discount of around CNY 500 (roughly $74 or even Rs. 5,100) to get a number of its latest iPhone models.
Suggested retail prices for brands such as LVMH’s Louis Vuitton and Kering’s Gucci were cut by around 3%, according to local press reports.
It follows announcements last month from auto manufacturers BMW AG and Mercedes-Benz, which stated prices for many car models would fall following the tax changes.
Apple declined to comment on the cost reductions, while LVMH and Kering did not immediately respond to requests for comment.
Beijing said in March that it would cut taxes and fees for all companies by nearly CNY 2 trillion in 2019, with the manufacturing, transportation and building businesses set to benefit as it seems to stimulate a slowing economy.
The planet’s second-largest economy is growing at its weakest pace in nearly 3 decades amid reduced domestic demand and an ongoing trade war with the United States.
Several Chinese electronic equipment retailers reduced costs to get iPhones in January, discounting latest versions by up to $118, following weaker-than-expected sales at end-2018.