Apple and other consumer brands lowered prices to their products in China on Monday as a Reduction in the country’s value-added tax (VAT) rate came into effect.
Price tags for products listed on the Apple’s China site were reduced on Monday morning, including a reduction of up to CNY 500 (approximately $74 or Rs. 5,100) for a number of its latest iPhone models.
Suggested retail prices for brands including LVMH’s Louis Vuitton and Kering’s Gucci were cut by around 3%, according to local media reports.
It follows statements last month from auto brands BMW AG and Mercedes-Benz, which said prices for many car models would drop following the taxation 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 taxes and fees for many businesses by nearly CNY 2 trillion in 2019, together with the production, transportation and building businesses set to benefit since it seems to stimulate a slowing market.
The planet’s second-largest economy is growing at its lowest rate in almost 3 decades amid reduced domestic demand and an ongoing trade war with the United States.
Several Chinese electronics retailers reduced costs to get iPhones in January, disregarding latest models by up to $118, following weaker-than-expected earnings at end-2018.