Chinese e-commerce platforms are offering discounts of up to 2530 yuan (US$351) on Apple’s latest iPhone 16 models, an effort to spur sales as first-quarter shipments by the US tech giant fell further in its second-largest market.

The step comes as Chinese online retailers increasingly vie for cost-conscious consumers in a slowing economy, with price cuts taking centrestage ahead of the annual “618” shopping festival on June 18, one of the country’s largest.

JD.com, is selling the iPhone 16 Pro with storage of 128GB at 5469 yuan, down 2530 yuan from Apple’s official price of 7999 yuan, Reuters checks showed on Wednesday.

The iPhone 16 with 256GB storage is listed at 5469 yuan, or a drop of 1530 yuan from its official price of 6999 yuan, including government subsidies.

Alibaba’s Tmall marketplace is offering comparable discounts, selling the iPhone 16 Pro with 128GB at 5499 yuan, or 2500 yuan off Apple’s official price, after applying coupons that include government subsidies.

Reuters was unable to ascertain if the discounts were being offered by Apple itself or the platforms.

Apple has previously cut prices on its latest models to boost sales during the “618” festival, said Will Wong, a senior smartphone analyst at IDC.

“Apple is repeating its sales promotion strategy for the shopping event last year,” Wong added. “It’s cutting prices on iPhone 16 Pro so that it can enjoy China’s state subsidies on digital products.”

Selective discounting has featured in the company’s China pricing strategy, whether through its own promotions or independent cuts by online platforms and authorised resellers.

In January, Apple offered rare discounts of up to 500 yuan on its own website and in past years Chinese e-commerce platforms have also rolled out similar deals.

Apple, JD.com and Alibaba did not immediately respond to a request for comment.

The US tech giant’s smartphone shipments in China dropped 9 per cent in the first quarter, while domestic competitors Xiaomi and Huawei Technologies posted gains of 40 per cent and 10 per cent respectively, market data from IDC shows.

Smartphones are among the key targets of China’s broader consumption stimulus plan, with local governments in major cities such as Beijing, the capital, offering subsidies of up to 500 yuan for handsets cheaper than 6000 yuan.

• Reporting by Liam Mo, Che Pan and Brenda Goh; Editing by Clarence Fernandez, of Reuters.