Apple along with other consumer brands Reduced prices for their products in China on Monday as a cut in the Nation’s value-added tax (VAT) rate came into effect.
Price tags for products listed on the Apple’s China site were lowered on Monday morning, including a discount of up to CNY 500 (roughly $74 or Rs. 5,100) to get some of its newest iPhone versions.
Suggested retail prices for brands including LVMH’s Louis Vuitton and Kering’s Gucci were cut by around 3 percent, according to local media reports.
It follows announcements last month from car brands BMW AG and Mercedes-Benz, which stated costs 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 stated in March that it would cut fees and taxes for all companies by nearly CNY two trillion in 2019, with the production, transportation and construction sectors set to benefit since it seems to stimulate a slowing market.
The world’s second-largest economy is growing at its weakest pace in nearly 3 years amid reduced domestic demand and an ongoing trade war with the United States.
Several Chinese electronic equipment retailers reduced prices to get iPhones in January, discounting latest versions by up to $118, following weaker-than-expected earnings at end-2018.