Apple has long been the formidable rival for domestic mobile phone manufacturers, particularly in the flagship segment where domestic brands struggle to compete.

Previous data highlights that in the high-end mobile phone market, which comprises devices priced above $600, Apple commands a staggering 66% market share, followed by Samsung with 18%. The remaining 16% is shared among domestic brands, with Huawei holding 7% and Xiaomi 2%. Collectively, domestic brands account for a mere fraction of the market.

Consequently, domestic mobile phones primarily focus on the mid-to-low-end segment, an area where Apple's presence is relatively limited. In this segment, Apple primarily relies on older models to maintain its presence.

While older models may lack the competitive edge of newer ones, even Apple's outdated models, priced around 3000-4000 yuan, are considered mid-to-high-end for domestic brands.

Recently, however, news broke that due to various promotional activities, the price of Apple's iPhone 13 has plummeted below 3000 yuan. This represents a significant discount from its original launch price of 5999 yuan, effectively halving the cost. As a result, sales have surged tenfold.

The implications are clear: Apple's competitiveness remains robust. When priced competitively, there are no unsellable phones.

Remarkably, the iPhone 13, released over three years ago, continues to attract a significant number of buyers even with a reduced price, underscoring its enduring appeal.

This incident serves as a stark reminder to domestic mobile phone makers that should Apple decide to engage in a price war and lower its phone prices, domestic brands may face unprecedented competition.

Apple's confidence in reducing prices stems from its high gross profit margin, enabling it to remain profitable even at lower prices. In contrast, domestic brands have limited room to reduce prices, even for their flagship models, which pale in comparison to Apple's profit margins.

Therefore, domestic mobile phone makers should not take the mid-to-low-end market for granted. If Apple chooses to compete in this segment, it will undoubtedly be a formidable force. The recently launched iPhone 16e could very well be a precursor to this strategy.