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China catches 'Apple fever' as potential iPhone market continues to grow

post #1 of 41
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The iPhone 4 has been selling at a pace much faster than its predecessor, the iPhone 3GS, serving as evidence that China is catching "Apple fever," according to one analyst.

Brian White with Ticonderoga Securities issued a note to investors Monday in which noted yet again that the iPhone 4 continues to be scarcely available in China. Apple has struggled to meet demand for its smartphone since it first launched in September.

"We continue to believe that China remains in the early stages of catching 'Apple fever' and demand for iPhone 4 has been well above the ramp of the iPhone 3GS thus far," he said.

White recently toured China and met with officials from the nation's wireless carriers. They indicated they believe the total high-end smartphone market in China is between 100 million and 125 million.

That huge addressable market could prove to be a "significant opportunity for growth" for Apple in the years ahead, White said.

"The iPhone 4 is sold out for two months at authorized Apple resellers, Apple stores and China Unicom," he said. "In fact, we estimate China Unicom has been unable to fulfill approximately one-third of the iPhone 4 orders due to shortages.

The iPhone 4 got off to a hot start on carrier China Unicom in September, when it sold 100,000 in its first four days. Since then, limited supply led to extensive scalping, forcing Apple to require reservations for purchases.

And China Mobile, which is not an official partner with Apple, has been helping users trim their SIM card to fit inside the iPhone 4, which requires a microSIM. White noted that even though China Mobile does not sell the iPhone 4, it has the most iPhone subscribers on its network.
post #2 of 41
The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.
post #3 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

We'll see won't we.
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Been using Apple since Apple ][ - Long on AAPL so biased
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Enjoying the new Mac Pro ... it's smokin'
Been using Apple since Apple ][ - Long on AAPL so biased
nMac Pro 6 Core, MacBookPro i7, MacBookPro i5, iPhones 5 and 5s, iPad Air, 2013 Mac mini.
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post #4 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

You've really got to update your calendar... we're actually in the 21st century... not the end of the 19th...
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post #5 of 41
Apple needs to seriously address shortage issue in China before them Chinese people start looking elsewhere..
post #6 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple

Who do you think the U.S. has been paying for decades? We don't have the predominance of our debt tied up in Andorra.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #7 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

Not all of China is composed of poor people. Shanghai and Beijing both have sizable upper and middle classes.

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GOA

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Proud AAPL stock owner.

 

GOA

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post #8 of 41
IS this the same chinese who are not rich enough that forced Porsche to create a 4 seater?
post #9 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple ...

This isn't true. There are quite some very rich people in China. Of course, there are many more poor. In automobiles, top tier expensive cars by BMW, Mercede-Benz, Land Rover, Bentley are more popular than Infinity, Accura or Lexus. I can't predict who will win out in the long run. But, in the short run, I feel that iPhone will outsell Androids for quite a while.
post #10 of 41
Quote:
Originally Posted by island hermit View Post

You've really got to update your calendar... we're actually in the 21st century... not the end of the 19th...

Seriously!
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #11 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

In absolute numbers China has a bigger middle class than the US at this point, and in any case comparable Android phones are comparably priced.
post #12 of 41
china has imported iphones for years from the gray market.

9
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whats in a name ? 
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post #13 of 41
Quote:
Originally Posted by xSamplex View Post

..trolling..

Please stop feeding this troll.
post #14 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

Perhaps you should expand your reading skills.

Quote:
EIJING, China - China boasts the third-largest population of millionaires in the world, behind the United States and Japan, the Boston Consulting Group (BCG) said on Thursday.

At the end of 2009, China had 670,000 households with more than $1 million (S$1.3 million) wealth, up 60 per cent from the same period in 2008. And the country's composite wealth grew by some 28 per cent from the end of 2008 to the end of 2009, to $5.4 trillion, BCG's latest research shows.

http://www.asiaone.com/Business/News...03-250668.html

And with an average urban household size of 3.2, there are more than 2 million family members to draw from, plus the the estimated 250-300 million people who fall into the middle class category. http://en.21cbh.com/HTML/2010-11-22/...DIwNzE0Mg.html

And when it comes to billionaires:
Quote:
A total of 64 people from the Chinese mainland made the Forbes magazine list of the world's richest billionaires, moving up to take second place for the first time.

The US led the list, released Wednesday, with 403 billionaires. The Chinese mainland was followed by Russia with 62 billionaires. Of the world's 97 new billionaires, 62 were from Asia. http://www.chinadaily.com.cn/busines...nt_9575101.htm

And if anything, they pay in cash.
post #15 of 41
Android Homescreens Become Advertising

A crappy OS made crappier by Ads. ROFL


http://mashable.com/2010/12/20/andro...e-advertising/
post #16 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

Ignorance is bliss, eh?
post #17 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

Not an accurate picture of China dude. There are a lot of rural poor people to be sure but you're a bit behind the times on a huge and growing urban middle class with a lust for western luxury goods. http://brandchannel.com/features_effect.asp?pf_id=478 suggests that China is 3rd behind the USA and Japan for luxury good purchases. Probably as many middle class Chinese as there are Americans (USA).
post #18 of 41
Quote:
Originally Posted by mdriftmeyer View Post

Ignorance is bliss, eh?

The article says the high-end smartphone market in China is between 100 million and 125 million. Since the total population is 1.3bn, in the general case he is right.
post #19 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

True, the vast majority of China's population are dirt farmers. But the story doesn't claim that all Chinese will be snapping up iPhones. 100 to 125 million is a huge number of potential smartphone subscribers. But it's still only a tiny fraction of the overall population. It's just 8% to 9% of the PRC's 1.3 billion people.

And I'm not sure any of those 1.3 billion would appreciate your comment about Android. Do you really think the Chinese can't tell the difference between iOS and Android? 5000 years of advanced culture, and you think that Western technology is all just magically wonderful to them?

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post #20 of 41
Quote:
Originally Posted by SockRolid View Post

And I'm not sure any of those 1.3 billion would appreciate your comment about Android. Do you really think the Chinese can't tell the difference between iOS and Android?

Android may do quite well in China. In the US, the advertising for Droid targets primarily male users. Since the gender ratio in China is approximately 125 male to 100 female, the Android hacker-like openness may be more appealing to Chinese males. I would expect Android to be as popular in China as it is elsewhere although apparently iPhone has sold well there so far. Time will tell.

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Life is too short to drink bad coffee.

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post #21 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

Just crawl back into your Android hole will you.
post #22 of 41
Haven't they read Consumer Reports?!
post #23 of 41
I'm confused -- I thought China Mobile used an entirely different technology that was incompatible with the iPhone. I thought it was some CDMA-derivative. So how could they just "trim a SIM" and get the iPhone 4 to work on their network?
post #24 of 41
Quote:
Originally Posted by Blastdoor View Post

I'm confused -- I thought China Mobile used an entirely different technology that was incompatible with the iPhone. I thought it was some CDMA-derivative. So how could they just "trim a SIM" and get the iPhone 4 to work on their network?

They use TD-SCDMA as 3G technology, which I think is related to W-CDMA (aka UMTS):
http://en.wikipedia.org/wiki/TD-SCDMA

So AFAIK iPhones should not work on their 3G network. They use GSM as 2G technology, though.
post #25 of 41
Apple products have been huge in China for the past 5 years. Brian White you don't know jack. Don't be too proud of yourself.
post #26 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

Wow, way to show what you don't know.
Yes China has extensive poverty, about 700mil people worth of it. But that means 300mil people aren't poor. That's about the size of the whole population of the USA -- except all have money.
post #27 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

You're talking about a nation with an annual income group of $75k upwards numbering about 55 million strong. That's almost the entire population of the UK.

Why do you think Ferrari, Lamborghini, Cartier and all the high-value marques are tripping over each other to get into the Chinese market?

The differences between interfaces may be trivial, but at the high end, as with the Ferraris and Lamborghini's vis-a-vis the Honda's and Toyota's, it's all about perceived quality, which Apple has in bag-loads, and which Google is studiously trying to avoid with Android as that is not part of its strategy.

Sadly, China's implementation of Android will not necessarily favour Google's own services in terms of licensing, or their search and advertising either with the likes of Baidu and other local giants dominating the scene.

That said, if there's any global market where there is room for many and more, it's got to be China.
post #28 of 41
Quote:
Originally Posted by 801 View Post

IS this the same chinese who are not rich enough that forced Porsche to create a 4 seater?

Ah! I didn't know that but it makes sense. That's very smart of Porsche - the 911 isn't very practical here in China, the Cayenne outsells it by quite a wide margin.

It was obviously the right call as I've been seeing at least one or two Panameras nearly every day on my regular commute these few weeks. It's starting to catch up to the Cayenne as China's most favoured Porsche.
post #29 of 41
Quote:
Originally Posted by spezi View Post

They use TD-SCDMA as 3G technology, which I think is related to W-CDMA (aka UMTS):
http://en.wikipedia.org/wiki/TD-SCDMA

So AFAIK iPhones should not work on their 3G network. They use GSM as 2G technology, though.

That's right - you can use the iPhone on China Mobile but only 2G (including GPRS).
post #30 of 41
Quote:
Originally Posted by Onhka View Post

And when it comes to billionaires:

And if anything, they pay in cash.

I think all of these wealth rankings/surveys actually underestimate the true wealth. There are a lot of rich folks here sitting on "black money" (there's a reason why they like to pay in cash).
post #31 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

This is so far off base I really don't even know where to start. I shall just say, 100% wrong.
post #32 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

Congratulations! You just won troll of the day!
post #33 of 41
Some good points have been brought up here, so I won't repeat them.

I just wanted to add that the Chinese are the most ostentatious group I have ever encountered. The thing that Chinese people fear the most, aside from being poor, is being mistaken by others for being poor. There's a distinct social pecking order here which is driven by how wealthy others think you are, and which affects how others treat you (well) and how you can treat others (badly). This has a very decided effect on Chinese spending habits. It's why young couples here will spend a year's salary to buy a car (which they then won't drive to work due to the bad traffic), why every young lady strives to own at least one LV purse (preferably real, but a good fake will also do), and it's also why folks in general are willing to spend so much of their disposable income on fancy cell phones (iPhones) and electronic gadgets (iPads).

As an expat working in Beijing I am constantly reminded of, and disgusted by, this superficialness that surrounds me. However, as a long-time investor of Apple stock I still see an untapped potential here. I feel that Apple is about to reach a tipping point in China - nearly everyone that plays with my iPad ends up buying one for themselves (or asks me to bring them one from the US). Apple obviously realizes the same and it's why they are planning to open so many stores across China next year. And it's not just iPhones and iPads that are selling well - from talking with staff at the Apple store, the new MacBook Airs are hot sellers too.

So don't underestimate the potental of these Chinese consumers. Yes, there are a lot of poor folks here, but the addressable market for Apple is huge and it is growing at an ever-increasing rate. And besides, this is a bad argument to make as the US is not exactly poverty-free either and even many of the so-called middle class folks there have huge debt and are effectively living day-to-day.

Regarding Android, it's all about the image and the apps. Until there is an Android phone that looks and feels as good as the iPhone (4), the Android fanboys can keep dreaming. And as for the apps there are a large number of them geared towards Chinese users on Apple's Chinese App Store (you can find many of them on the US and UK stores as well).
post #34 of 41
Quote:
Originally Posted by spezi View Post

They use TD-SCDMA as 3G technology, which I think is related to W-CDMA (aka UMTS):
http://en.wikipedia.org/wiki/TD-SCDMA

So AFAIK iPhones should not work on their 3G network. They use GSM as 2G technology, though.

ah... maybe that's it. How strange, though -- so if you're in an area that lacks TD-SCDMA, you fall back to GSM? So a phone on their network has to support both? No wonder Apple has been slow to support them
post #35 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

From Apple's latest 10-k

Net Sales increase from 2009-2010, by Operating Segment:

Americas: up 29%
Europe: up 58%
Japan: up 75%
Asia-Pacific: up 160%

Must simply be the iPhone is really popular, then? Yes, but there's more to the story:

Mac Unit Sales from 2009-2010, by Operating Segment:

Americas: up 21%
Europe: up 36%
Japan: up 22%
Asia-Pacific: up 62%

Note those are Mac unit sales, not net sales. Apple doesn't separate margin for individual products, but it's generally believed that Macs enjoy a significantly greater margin than their other products.

Quote:
Asia-Pacific net sales were also favorably affected by strong demand for Mac portable and desktop systems and for iPad. Particularly strong year-over-year growth was experienced in China, Korea and Australia.

Maybe those poor dirt farmers are smart enough not to buy cheap junk.
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post #36 of 41
Quote:
Originally Posted by AIA View Post

However, as a long-time investor of Apple stock I still see an untapped potential here.

You're not the only one.

Quote:
As an expat working in Beijing I am constantly reminded of, and disgusted by, this superficialness that surrounds me.

You're not the only one.
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post #37 of 41
Quote:
Originally Posted by xSamplex View Post

The Chinese are not rich enough to favor Apple, which is relatively costly hardware. China will be primarily a country of Android users. And frnakly, the differences between the interfaces are pretty trivial anyway.

In case you're ignorant enough to take note that china is the largest creditor to the US. Hope this knocks some reality into your retarted brain
post #38 of 41
Quote:
Originally Posted by fila97 View Post

In case you're ignorant enough to take note that china is the largest creditor to the US. Hope this knocks some reality into your retorted brain

I wish I had a retorted brain, I can never think of the right thing to say at the time.
post #39 of 41
Quote:
Originally Posted by fila97 View Post

In case you're ignorant enough to take note that china is the largest creditor to the US. Hope this knocks some reality into your retorted brain

There's really no call for this. He's a troll; this has been established. Please edit your post to remove the unnecessary insults.

Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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Originally posted by Relic

...those little naked weirdos are going to get me investigated.
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post #40 of 41
Quote:
Originally Posted by Tallest Skil View Post

There's really no call for this. He's a troll; this has been established. Please edit your post to remove the unnecessary insults.

Or at least he should edit the post (again) to spell "retarded" correctly. Looking through the posts, looks like he corrected "retorted" to spell "retarted", which is even more lulz.
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