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iPhone 'just getting started in China,' Apple could reach 35M sales in 2013

post #1 of 10
Thread Starter 
Apple has "enormous" potential to grow its sales in China, as one new estimate predicts Apple will sell 25 million iPhones there this year, and sales will grow to at least 35 million in 2013.

The estimates come from Chris Whitmore of Deutsche Bank, who believes that the iPhone is "just getting started in China." He expects China Telecom and China Unicom — Apple's two carrier partners in China?— to approach 300 million 3G subscribers by the end of 2013.

If Apple adds China Mobile as a partner, as it has been rumored to do for some time, the iPhone maker's addressable market in China would increase by about 125 million 3G subscribers in 2013, bringing the total number of potential customers to nearly 425 million.

Whitmore estimates that Apple sold between 6 million and 6.5 million iPhones in the first quarter of calendar 2012, representing about 15 percent of its current addressable market. But he also believes that iPhone momentum will slow slightly in China over the coming months as the life cycle of the latest-generation iPhone 4S continues.

However, over the next few years, he believes Apple will benefit from the coming growth of 3G subscribers from China Telecom and China Unicom. If Apple were to grow its penetration of the potential subscriber base to between 20 and 25 percent, he estimates iPhone sales in China would be around 35 million in 2013 — and that's without a potential partnership with China Mobile, the largest carrier in the world.

Though China Mobile is not an official carrier partner with Apple, the company does have 15 million iPhone users on its network. Subscribers who use the iPhone with China Mobile cannot reach 3G wireless speeds because the carrier's TD-SCDMA network is not compatible.

Deutsche


Currently, the dominant handset vendor in China is Samsung, which has a 28 percent share of the market. Nokia is the second-largest vendor in China with a 23 percent share, followed by Huawei (15 percent) and ZTE (13 percent), while Apple comes in fifth with just 9 percent.

Apple's sub-10-percent market share in China compares to the company's 43 percent share of smartphone sales in North America, demonstrating the huge potential for growth Apple has not only in China, but in the entire Asia-Pacific region.

"We believe the iPhone is extremely well positioned to capture the tremendous growth in China and long-term opportunity for the iPhone in this market is substantial," Whitmore wrote in a note to investors on Monday.

With a possible China Mobile deal and an anticipated sixth-generation iPhone launch in the future, Deutsche Bank has reiterated its "buy" rating for AAPL stock, with a price target of $650.
post #2 of 10

Deutsche Bank has reiterated its "buy" rating for AAPL stock, with a price target of $650.

 

So, the Deutsche's think AAPL will only rise 7.8% over the next twelve months!  Amazing.  it will likely be $650 in the next week.

post #3 of 10
This new AI blog really hates iPads! What the heck we they thinking ... The future of computing mass and they upgrade to a system that barely functions on an iPad and even informs me I'm using an incompatible browser! Unbelievable!

Any way back on subject ...

/sarcasm

As so many here said in the past ... But no one in China can afford over priced Apple products

/end sarcasm
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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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 10

How well does the iPhone work with Chinese characters?  I understand the language uses symbols and has something like 2,000 symbols.  How do you type does symbols?  May be somebody who is fluent with the Chinese languages could pitch in.  

TIA.

post #5 of 10
I'd have to say I can't imagine anything but a virtual keyboard system as iPhone and of course iPad use with the ability to have multiple contextually adware options being feasible. One of the reasons I have always been bullish on Apple's chances in countries such as China that use such a complex graphical language is precisely because of the use of the virtual input.
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.
Reply
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 #6 of 10

 

Quote:

How well does the iPhone work with Chinese characters?  I understand the language uses symbols and has something like 2,000 symbols.  How do you type does symbols?  May be somebody who is fluent with the Chinese languages could pitch in.  

TIA.

 

iPhone works very well with Chinese (Mandarin or Cantonese). there are two input options;

1) either using Pin Yin, this is a system of using Latin Characters to spell out the phonetic version of a symbol, as you start to type the screen will give character options for you to choose.  This is the most used system for texting on a phone or typing on a computer and is very quick.

2) If you wish you can choose to draw each symbol with your finger in the input screen, this is much slower but is useful if you are struggling with the pin yin spelling.

 

Basically, it is not a problem and phones in China have used the first system for a long while and the second system has been available on all touch screen phones since they first became available. It is often quicker to send a message in Chinese than to convey the same message in English.

post #7 of 10

 

Quote:
Originally Posted by AjitMD View Post

How well does the iPhone work with Chinese characters?  I understand the language uses symbols and has something like 2,000 symbols.  How do you type does symbols?  May be somebody who is fluent with the Chinese languages could pitch in.  

TIA.

 

The iPhone supports several methods of entering Chinese characters. The first is a commonly-used romanization system for Chinese characters called 'pinyin' - you basically spell out the Chinese characters using abc's (Google for more details). This isn't really anything special as pinyin has been available on the earliest feature phones sold here. In addition to pinyin, the iPhone also gives you the option of drawing characters on the screen as you would actually write them. This is useful because some of the older generation here do not use/know pinyin.

post #8 of 10
Quote:
Originally Posted by AjitMD View Post

How well does the iPhone work with Chinese characters?  I understand the language uses symbols and has something like 2,000 symbols.  How do you type does symbols?  May be somebody who is fluent with the Chinese languages could pitch in.  

TIA.


]The iPhone works great with both Chinese and Japanese. You switch to the Chinese keyboard and start typing and it gives you a range of words to select so it is actually quite fast. You also have the option to draw the character on the screen which is also quite fast.
post #9 of 10

Get on China Mobile and then see sales soar........

post #10 of 10

I need Japanese input, and that's one of the reasons I love me a software keyboard: the ability to use an instant keyboard custom-made for any language, not a mini QWERY clumsily pressed into non-English service. Even better, there are multiple input methods available for languages like Chinese and Japanese (simply because there are multiple ways to go about it, and users' preferences differ), and a software keyboard allows those choices too.

 

But I'm jealous of one thing that iOS gives to Chinese input and not Japanese: the ability to draw Chinese characters (as FreeRange noted). With a little necessary customization by Apple, there's no reason it couldn't be added as an option for inputting the thousands of Chinese characters used in Japanese. It'd be particularly useful for those times when you need to input a Chinese character but simply don't know how it's pronounced (and thus can't input it the usual way). I don't why it's not made available for Japanese too. (I suppose it's possible that Apple only licenses the character drawing tech, and it'd be up to the developer to modify it for Japanese use…)

 

Anyway, getting back on topic: Here's a tentative "congratulations" to Apple on growing success in China!

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