Originally Posted by george li
It seems that many on this board are underestimating the leverage china mobile has over apple. the matter of fact is that china mobile has been doing quite well even without iPhones over the years. Besides, Chinese New Year, the biggest holiday and shopping season in china is months away. China mobile really is in no rush to reach final agreement with Apple.
And I have to remind you that to an average consumer in China the premium cell phone brand is samsung, not Apple. This May sound hard to believe, but the huge amounts of money Samsung spends in that market does work to its advantage. Apple in many ways is perceived arrogant as a company and it's products overpriced and not offering the best value. Besides, Average Chinese consumers don't really value apple's design or taste that much. They prefer something is more in your face --- so the bigger and the flashier, the better. In that regard, the Chinese market is a total different beast from the US or Japanese market, and don't expect similar results as NTTDocomo had after it inked its deal with apple. Japanese adores Apple and despises anything Korean, but in china it is the opposite. If you read Chinese, you will find many comments in Chinese tech blogs and onlin forums are rooting for china mobile to stick it to apple in favor of Samsung and local brands.
I am not sure about that. Although Samsung is definitely up there is terms of their brand name due to huge advertising campaigns, I think the average customers in China view both as the top premium brands for cell phones. iPhone probably slightly more in big cities and Samsung is the smaller cities.
In terms of being overpriced and best value, Samsung's Galaxy S and Note series ain't exactly cheap. If anything, the customer looking for value is likely going with local brands like xiaomi, Lenovo, etc.
The top income group in China that can afford the top end phones value brand names a lot. That is why you see luxury brands like LV, Mercedes, Hermes, BMW, Lafite (wine) are doing so well in China. I would say the Chinese (top income group) are actually willing to pay more for a brand name compare to US, EU.
As for reading Chinese blogs, I am not sure it gives us the best picture. Not saying all the pro Samsung/Anti Apple bloggers are paid by Samsung. But I think some of that 14 billion advertising budget is spent on 'internet marketing' so it will skew results a bit.