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New Budget iPhones Not Likely To Succeed In China Where 5G Is Now Common


04/16/2020


New Budget iPhones Not Likely To Succeed In China Where 5G Is Now Common
Currently most of the Chinese smartphones that are currently available in the Chinese market that are in a similar price range to Apple Inc’s new iPhone SE for the budget-conscious, have 5G capability which is lacking in the iPhones and therefore analysts predict that this new budget smarpthone may not be successful in the Chinese market.
 
The new iPhone SE priced at $399 – the cheapest iPhone available in the market, will likely not be bought by about 60 per cent Chinese consumers, according to a recent conducted on social media site Weibo which in which about 350,000 respondents participated.
 
However, about one fifth of the respondents in the survey said that they would purchase it while the rest opined that they would consider making a purchase. While the poll did not ask the respondents about the reason for their choice, many of the respondents said that they would consider purchasing the iPhone of the price was reduced further.
 
“If you don’t buy it and I don’t buy it, tomorrow the price will drop another 200 yuan ($28),” a Weibo user whose comment got more than 10,000 likes was quoted in the Chinese media as saying.
 
China is the third largest market for iPhones for Apple which accounts for about 15 per cent of the total sales of the company. In recent years however, that market share has shrunk for Apple because of increased competition from Chinese Android brands which have steadily come up with series of high end phones with features similar to the iPhones.
 
Competition in the Chinese market for Apple has got even fiercer as its Chinese rivals have come up with and launched 5G compatible phones that can be used in the new upgraded telecommunications networks in the country while Apple is yet to launch an iPhone that is 5G compatible.
 
Prices of iPhone 11 were slashed by as much as 11 per cent by several Chinese online retailers last week. For the Chinese market, apple sometimes allows local vendors and retailers to reduce prices for its iPhones to prop up demand even though it rarely follows this strategy for vendors in its other overseas markets.
 
The iPhone SE would be appealing mostly for the loyal customers of Apple who would want to own an additional iPhone but will not be willing to make an investment of about $700 for the high-end iPhone 11, said many of the China-based analysts.
 
“The new iPhone SE will for sure attract mid-range users who don’t take 5G connectivity as a necessity,” said Mo Jia, who tracks the global smartphone industry at research firm Canalys.
 
None the less, the movement of demand for the new iPhone in China will be closely tracked by tech investors in order to get ac clearer idea about how consumer devices could rebound after the subsidence of the coronavirus pandemic in the country as well as whether Apple can cushion the hit on iPhone sales in other markets by sale of the phones in the Chinese market.
 
(Source:www.reuters.com)


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