Apple has initiated another round of discounts in China, a move unusual for the company as it strives to maintain its foothold in the world’s second-largest economy.

Starting Monday, Apple slashed prices of the latest iPhone 15 model by over 20% on Chinese e-commerce platforms such as JD.com and Alibaba’s Tmall, according to the state-run Global Times. Discounts on Tmall reached up to 2,300 yuan ($138), reports Reuters. This promotion continues until May 28.

This marks Apple’s second round of discounts in China this year. In January, Apple offered a 500 yuan ($69) discount on its official website over a three-day period before the Lunar New Year. Third-party resellers have also provided discounts on the iPhone 15.

Analysts believe these discounts are essential for Apple to sustain its market position in China.

“Apple’s second price cut in China this year is a strategic move to protect its share in the premium segment,” said Ivan Lam, a senior analyst at Counterpoint Research. He suggests Apple is sacrificing short-term hardware revenue for long-term growth in “service-related revenue.”

Furthermore, Monday’s discount may not be Apple’s last in China. “Apple is adapting to the value-seeking trend in China,” said Will Wong, senior research manager for the Client Devices Group at IDC Asia-Pacific. “Chinese consumers are well-aware of price discounts…so it will be challenging for Apple not to offer similar incentives in the future.”

Apple’s revenue in China dropped by 8% year-on-year in the first quarter of 2024, although CEO Tim Cook noted during the company’s earnings call that iPhone sales in China grew during that period, without providing specifics. Cook also mentioned that the iPhone 15 and 15 Pro Max were the top-selling phones in “urban China.”

Greater China—which includes mainland China, Hong Kong, and Taiwan—accounted for 19% of Apple’s total revenue in 2023, making it the third-largest region by sales.

This contrasts with independent analyses showing Apple struggling to maintain its market share. Apple’s sales declined by 19.1% year-on-year in the first quarter, while Huawei and HONOR’s sales increased by 69.7% and 11.5% respectively, according to Counterpoint Research.

Huawei’s sales have surged since the release of the Mate 60 Pro series last August. The company launched a new range of high-end smartphones, the Pura 70 series, in April, with two models selling out within a minute on Huawei’s official online store, as reported by Reuters.

Wong suggests that, rather than lowering prices, Apple needs to offer more “wow” factors to attract Chinese consumers. Android competitors have introduced AI features and foldable designs to retain customer loyalty.

Apple is reportedly in discussions with companies like Google and China’s Baidu to provide AI services for the iPhone. Additionally, it is working on a foldable phone, as reported by The Information in February.