Apple ( NASDAQ:AAPL ) just dropped some rare deals in China, slashing up to 500 yuan ($68.50) off its iPhone 16 Pro and iPhone 16 Pro Max. The four-day promotion (Jan 47) is no small moveit's Apple's answer to Huawei and other domestic giants muscling into its turf. Shoppers using WeChat Pay or Alipay also score savings on older models and gadgets like MacBooks and iPads. But let's not kid ourselves: this isn't just about New Year cheer. It's Apple's play to protect its slice of the world's biggest smartphone pie.

Here's the scorecard: Apple's market share in China slipped to 14% in Q3 2024, down from 16% a year earlier. Meanwhile, Huawei has been on fire, surging to 16% with shipments up 24%, thanks to its game-changing chipsets and aggressive pricing. And it's not just Huaweiother local brands are turning up the heat too. Apple, historically allergic to discounts, is leaning into promotions more than ever, knowing it needs to keep up or get left behind.

For investors, this is a frontline battle worth watching. Apple's performance in Chinaa region critical to its global playbookcould shape its growth story in 2025. While the discounts might juice short-term sales, the bigger picture is whether Apple can outpace Huawei's momentum and defend its premium brand status. If Apple doesn't win this round, it's not just market share on the lineit's the future of its edge in a cutthroat market.

This article first appeared on GuruFocus .