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Apple's Cook 'incredibly optimistic' as China Mobile iPhone orders in multi-millions

post #1 of 58
Thread Starter 
According to China Mobile Chairman Xi Guohua, demand for the carrier's iPhone looks to be strong as orders are already in the multi-millions, prompting Apple CEO Tim Cook to say he is "incredibly optimistic" about the new partnership.

China Mobile


Speaking to The Wall Street Journal, Cook was expectedly upbeat about the deal with China Mobile, which will put Apple's latest iPhone on sale for the first time starting this Friday.

"We've gotten to know each other...today is a beginning, and I think there are lots more things our companies can do together in the future," Cook said.

The Apple chief alluded to future cooperation with the world's largest wireless carrier, but did not identify specific plans. It is likely that the company will introduce cellular-capable iPads as it has done on other partner carriers' networks.

In the near-term, Apple may look to make its iPhone more affordable, and therefore more attractive, for Chinese consumers. iPhone pricing has been a sticking point in emerging markets, though Apple has instituted measures like payment plans to help overcome up-front costs. It seems that a lower-end model is not in the cards, however, as Cook toed the company line of "quality over quantity."

"Apple has always been about making the best products, not the most products, so that's always our North Star and that's not going to change ever," Cook said.

Analysts view the China Mobile deal as a huge win for Apple as the iPhone could address hundreds of millions of customers on the carrier's newly deployed 4G TD-LTE network. The topic is thought to be a main focus for investors during Apple's next quarterly earnings call slated for Jan. 27.

It was reported on Monday that Foxconn had shipped an initial batch of 1.4 million iPhone 5s handsets to China Mobile to cover January sales. Demand is still largely unknown, though a more concrete outlook should solidify after the first few days of sales.
post #2 of 58
You hear that Odo? "Optimistic!"
"See her this weekend. You hit it off, come Turkey Day, maybe you can stuff her."
- Roger Sterling
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"See her this weekend. You hit it off, come Turkey Day, maybe you can stuff her."
- Roger Sterling
Reply
post #3 of 58
Sounds like big big news. Wish I bought Apple yesterday. It sounds like a first for Cook to say something like that publicly.WOW! WOW! WOW!
post #4 of 58

I really think a more expensive premium model has to be added in China. An iPhone that costs $1500 minimum. Selling 10 million of them a year would be like selling 20 million of any other phone.

na na na na na...
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na na na na na...
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post #5 of 58
But China is full of poor people and there is no growth and no subsidies and wah wah!
post #6 of 58

INCREDIBLY.

 

OPTIMISTIC.

 

Buy APPL.

post #7 of 58
Quote:
Originally Posted by 512ke View Post

Buy APPL.
Appel Petroleum? Why?

I normally avoid investing in oil & gas companies
post #8 of 58
Interesting optimistic statement~

I am an Chinese and I read online Chinese news about reservation of iPhone 5s/c through China Mobile. It seems the story here is different from those reported by Chinese technology news agencies.

Based on their reports, the sale or reservation is totally not as hot as it states in this post. The reservation number is well below that of China Telecom (270k vs 150k) at same time point. I don't know which source is more true than the other. But presumably as a Chinese and know a little bit of Chinese customer behavior, I don't think iPhone 5s/c will reach the sale peak as seen before. This is because those people who really love iPhones or Apple products have already got the gears through gray market. Those who are still waiting are kind of people that not super fan of Apple, and they can pick up a samsung handset without hesitate due to the slightly lower price. Thus, the key I think will be the price. If the price is not attractive low, It is possible that iPhone 5s/c just a good sale phone rather than a hot sale phone.

Hopefully I am wrong. We will see.
post #9 of 58
Quote:
Originally Posted by Flabingo View Post

Sounds like big big news. Wish I bought Apple yesterday. It sounds like a first for Cook to say something like that publicly.WOW! WOW! WOW!

Doomed.

"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
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"Apple should pull the plug on the iPhone."

John C. Dvorak, 2007
Reply
post #10 of 58
Quote:
Originally Posted by aircm1982 View Post

 Thus, the key I think will be the price. If the price is not attractive low, It is possible that iPhone 5s/c just a good sale phone rather than a hot sale phone.

Hopefully I am wrong. We will see.

 

You're wrong as are all the white Wall Street analysts. Plain and simple, luxury goods in China are a status symbol. The point is to show everybody what you can afford. If you walk around with a 5c, you're telling everybody in bright plastic colors that you can't afford a 5s. People will buy a fake before they buy a cheap model.

post #11 of 58

That's your bias~

 

Admittedly, there are many Chinese people as you described, superficial and love showing off how cool they are, but not all of them are. Your opinion is coming from the reports from westerner angle without detailed examination of Chinese or living in China for long time. This is same as the biased impression of western countries. Just one- or two-time visits, you can summarize the western countries. It is absolutely a joke.

 

Even if as you said everybody wants to show he/she can afford iPhone 5s, why not start with China Telecom or China Unicom. Their bundle prices are usually cheaper than that of China Mobile. This is definitely not showing off situation.

 

So, please don't compare me with those so-called analyzers in Wall Street. They don't know Chinese at all. Only they know is plain data, which can be easily misinterpreted using inappropriate statistics (intentionally).

post #12 of 58
Quote:
Originally Posted by aircm1982 View Post
 

That's your bias~

 

Admittedly, there are many Chinese people as you described, superficial and love showing off how cool they are, but not all of them are. Your opinion is coming from the reports from westerner angle without detailed examination of Chinese or living in China for long time.

 

Wrong. I thought the 5c would be successful at first until I was told the exact same thing by several people from mainland China. As they put it, the bright plastic case, combined with the change of the black color was a major mistake by Apple. The previous practice of selling the old model gave people an out... not so with the 5c.

post #13 of 58
Quote:
Originally Posted by konqerror View Post
 

 

Wrong. I thought the 5c would be successful at first until I was told the exact same thing by several people from mainland China.

If you want to know how iPhone 5s/c sale in China, you should pay a little bit attention to a Chinese forum: bbs.weiphone.com.

 

You can easily count how many threads in forum of each handsets. Usually it looks like (2000 vs 100) everyday. So at that earlier stage I've already believed the 5c wouldn't be successful as 5s in China. Indeed, the later report from worldwide suggests 5s has 3.4 times over 5c, which indirectly confirmed what I believe.

 

If you really want to do the business in China, you definitely should know Chinese publics behavior, not just small portion of people like showing off, even selling their kidney for nonsense. Don't be stupid bestbuy. Be a Chinese first.

post #14 of 58
I don't think tim would be making that kind of statement if he knew the werent selling a large volume of phones.
post #15 of 58
Wonder what that dumb@ss Wedge Partners analyst Jun Zhang has to say about his estimate of 100 thousand pre-orders now? Oh well, maybe this crook is celebrating with his clients for getting them the opportunity to buy APPL at a lower price.
post #16 of 58

Remember what he said about iPhone 5s/c, even 5s 3.4 times over 5c. He said nothing specifically about 5s or 5c.

 

Also, remember those statements are vague without any hard data support. So, when the really data comes out later, he can interpret either way to keep optimistic. Kindly like politicians: if he/she indeed lies about something, he/she will explain he/she misunderstood the questions or states the answers are taken out of context.

 

What smart people are, businessmen and politicians~

post #17 of 58
Quote:
Originally Posted by jpmia View Post

I don't think tim would be making that kind of statement if he knew the werent selling a large volume of phones.

Remember what he said about iPhone 5s/c, even 5s 3.4 times over 5c. He said nothing specifically about 5s or 5c.

 

Also, remember those statements are vague without any hard data support. So, when the really data comes out later, he can interpret either way to keep optimistic. Kindly like politicians: if he/she indeed lies about something, he/she will explain he/she misunderstood the questions or states the answers are taken out of context.

 

What smart people are, businessmen and politicians~

post #18 of 58
Oh, no the analyst are wrong again....Apple stock will get punished cuz of that
post #19 of 58
I think Apple will do whatever they need to do to be successful with sales through China Mobile. Keeping in mind that iPhone "market share" has never been a goal with Apple.
post #20 of 58

The Wall Street analysts have already said the Chinese can't afford iPhones so why is Tim Cook lying to everyone about multi-millions of iPhones.  The Chinese only buy Android smartphones.  Google to $1200 a share and Apple to $500 a share seems just about right..  It's time for Apple to just give up and admit defeat to Android.  Apple is doomed.

 

/s

post #21 of 58
Quote:
Originally Posted by Dick Applebaum View Post

Those of us who are not threatened are beyond that!

Just red flag him and move on, Dick… it isn’t worth it bantering with him. Did you read his entire 3-post opus? All crude and offensive. A true guttersnipe if ever I saw one…

Let’s not encourage it.
post #22 of 58

You go to the Apple Store and buy a phone, then you walk down the street to a carrier store of your choice and buy a SIM card. In theory the phone maker and the network provider don't need to say a single word to each other.

 

And yet there are these stories about Apple bargaining for years on end with network providers?

post #23 of 58
I dont think 5s/5c would make big splash. Iphone6 will be. Your argument is the same as the one when netcom started to sell iphone4. At that time, ppl said no one would buy iphone from netcom 'cause those wanting one got one already from graymarket.
Quote:
Originally Posted by aircm1982 View Post

Interesting optimistic statement~

I am an Chinese and I read online Chinese news about reservation of iPhone 5s/c through China Mobile. It seems the story here is different from those reported by Chinese technology news agencies.

Based on their reports, the sale or reservation is totally not as hot as it states in this post. The reservation number is well below that of China Telecom (270k vs 150k) at same time point. I don't know which source is more true than the other. But presumably as a Chinese and know a little bit of Chinese customer behavior, I don't think iPhone 5s/c will reach the sale peak as seen before. This is because those people who really love iPhones or Apple products have already got the gears through gray market. Those who are still waiting are kind of people that not super fan of Apple, and they can pick up a samsung handset without hesitate due to the slightly lower price. Thus, the key I think will be the price. If the price is not attractive low, It is possible that iPhone 5s/c just a good sale phone rather than a hot sale phone.

Hopefully I am wrong. We will see.
Quote:
Originally Posted by aircm1982 View Post

That's your bias~

Admittedly, there are many Chinese people as you described, superficial and love showing off how cool they are, but not all of them are. Your opinion is coming from the reports from westerner angle without detailed examination of Chinese or living in China for long time. This is same as the biased impression of western countries. Just one- or two-time visits, you can summarize the western countries. It is absolutely a joke.

Even if as you said everybody wants to show he/she can afford iPhone 5s, why not start with China Telecom or China Unicom. Their bundle prices are usually cheaper than that of China Mobile. This is definitely not showing off situation.

So, please don't compare me with those so-called analyzers in Wall Street. They don't know Chinese at all. Only they know is plain data, which can be easily misinterpreted using inappropriate statistics (intentionally).
post #24 of 58

First off, you're making a lot of assumptions of a country with a population of over 1 billion people. Just because you're Chinese and live in China does not mean that you can predict purchasing patterns for any meaningful size of the market. Using the number of forum posts as a metric for the popularity of a product is crazy. Apple has done business on a massive scale in China for a long time and they have Chinese employees as well as Chinese partners. Saying that they don't know China is incorrect.

 

Beyond that, if China Mobile thought that the iPhone wouldn't be a huge product for them, they wouldn't spend so much time in negotiations and they wouldn't actually sell the product. The leadership of Apple and China Mobile wouldn't go to the media and say that they had huge sales if they didn't. Apple's growth in China is huge and other than North America, it is their largest territory by revenue.

 

 

Quote:

Originally Posted by aircm1982 View Post
 

If you want to know how iPhone 5s/c sale in China, you should pay a little bit attention to a Chinese forum: bbs.weiphone.com.

 

You can easily count how many threads in forum of each handsets. Usually it looks like (2000 vs 100) everyday. So at that earlier stage I've already believed the 5c wouldn't be successful as 5s in China. Indeed, the later report from worldwide suggests 5s has 3.4 times over 5c, which indirectly confirmed what I believe.

 

If you really want to do the business in China, you definitely should know Chinese publics behavior, not just small portion of people like showing off, even selling their kidney for nonsense. Don't be stupid bestbuy. Be a Chinese first.

post #25 of 58
The 5C was not designed as a low cost phone for China. It had two purposes. 1. To offer last year's model at greater margins, and 2. to make sure that anyone who wants an aluminum beauty, buys the new phone. Same logic for China and US or wherever.
post #26 of 58

I think it is a bit more than that. I think it is Apple setting itself up to differentiate the lines more. This is the more conservative route to take. They have now set up two completely different manufacturing lines as well as positioning the rest of ops to handle two different phones. The 5c might have better margins when sold but it would have been cheaper to not go through the whole process of designing, manufacturing and selling a somewhat new product. I think it is also part of the whole process of the iPod slowing down. That slow down is accelerating as more people want devices that are connected. As time moves on, we'll probably see more differentiation between the two products.

 

Quote:

Originally Posted by currentinterest View Post

The 5C was not designed as a low cost phone for China. It had two purposes. 1. To offer last year's model at greater margins, and 2. to make sure that anyone who wants an aluminum beauty, buys the new phone. Same logic for China and US or wherever.
post #27 of 58

Class act in Tim Cook's traveling to China to be on hand for the China Mobile rollout.  His visibility shows respect in this all-important market.  He announced that there are 1/2 million active Chinese app developers for iOS already!   Things could get interesting. 

post #28 of 58
I'm a little surprised Cook is talking. Wouldn't this be a quiet period for Apple, prior to earnings release?
post #29 of 58
Quote:
Originally Posted by foad View Post

I think it is a bit more than that. I think it is Apple setting itself up to differentiate the lines more. This is the more conservative route to take. They have now set up two completely different manufacturing lines as well as positioning the rest of ops to handle two different phones. The 5c might have better margins when sold but it would have been cheaper to not go through the whole process of designing, manufacturing and selling a somewhat new product. I think it is also part of the whole process of the iPod slowing down. That slow down is accelerating as more people want devices that are connected. As time moves on, we'll probably see more differentiation between the two products.
Finally someone makings sense regarding the 5C. It always amazes me when people think the 5C is only about increasing margins, or the completely ludicrous idea that Apple specifically designed it not to sell, to get people to buy the 5S instead. No way would Apple spend the time, energy and money to build a product they didn't want people to buy. That's ridiculous. Only Apple knows how well the 5C is selling. IF it's not selling as well as they expected I'm sure they have lots of data to tell them why (e.g. too expensive, people want metal not plastic, don't like the colors, etc.) and they can use that data to improve the product. I still think the idea of different iPhone lines (vs just selling last years model for cheaper) is a good idea.
post #30 of 58
Quote:
Originally Posted by Suddenly Newton View Post

Doomed.
Doomed indeed because Cook basically reaffirmed that Apple won't be making a cheap iPhone. I wonder when Wall Street will finally get it?
post #31 of 58
Quote:
Originally Posted by Rogifan View Post

Doomed indeed because Cook basically reaffirmed that Apple won't be making a cheap iPhone. I wonder when Wall Street will finally get it?
Never
post #32 of 58
Suggestion: Avoid quoting the offensive post. It just makes more work for the moderators to clean up.

I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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I admit to being a Fanatical Moderate. I Disdain the Inane. Vyizderzominymororzizazizdenderizorziz?

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post #33 of 58
Quote:
Originally Posted by Rogifan View Post

I'm a little surprised Cook is talking. Wouldn't this be a quiet period for Apple, prior to earnings release?

Ist quarter for Apple ended on Dec. 31, 2013.  Anything Tim say about China sales now will affect Apple 2nd quarter numbers. Even if they took pre orders from China in Dec., Apple do not count sales until it ships. And all those iPhones will ship in Apple 2nd quarter. 

post #34 of 58
Quote:
Originally Posted by Rogifan View Post


... It always amazes me when people think the 5C is only about increasing margins, or the completely ludicrous idea that Apple specifically designed it not to sell, to get people to buy the 5S instead. No way would Apple spend the time, energy and money to build a product they didn't want people to buy... I still think the idea of different iPhone lines (vs just selling last years model for cheaper) is a good idea.

It also bears repeating that the 5C is not just last year's model wrapped in a new case. It has far superior LTE capability too: the iPhone 5 LTE support is actually poor for some parts of the globe, including Europe. The improvement (in both 5C and 5S) is probably less visible if you're in the US, it's quite understandable that Apple would prioritise support for its home country in its first LTE phone, then widen it in the next model(s).

OS X and iOS user

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OS X and iOS user

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post #35 of 58

On a lighter note, I love that "Cook towed the company line".

 

Just one letter, or maybe he really toed the company line? :err:

OS X and iOS user

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OS X and iOS user

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post #36 of 58
aircm1982

Thanks for your input from a real Chinese viewpoint, its very valuable on these forums. Similar views have been expressed before by some of the analysts, so you may find not all of them are so out of touch with China.
post #37 of 58
Quote:
Originally Posted by DavidW View Post

Ist quarter for Apple ended on Dec. 31, 2013.  Anything Tim say about China sales now will affect Apple 2nd quarter numbers. Even if they took pre orders from China in Dec., Apple do not count sales until it ships. And all those iPhones will ship in Apple 2nd quarter. 
Here's what Tim Cook said to the Wall Street Journal:
Quote:
Q: How is Apple performing in China and how will the deal help its sales outlook?

Cook: Last quarter, we haven’t announced numbers, but I can tell you that last quarter we sold more iPhones in Greater China than at any time in our past. And so it was a record quarter, helped by launching China very first in the queue [launching new iPhones at the same time as the U.S.] And I think with what we’re announcing today, I see a huge barrier being removed, because there are lots of people that love China Mobile’s network and love iPhones and those two spheres are finally coming together, so it’s a monumental day and a watershed announcement.

I was specifically referring to Tim's comments about record iPhone sales in China last quarter. Normally it's a quiet period before earnings and Apple doesn't make any comments as to what they're going to report.
post #38 of 58
Quote:
Originally Posted by Command_F View Post

It also bears repeating that the 5C is not just last year's model wrapped in a new case. It has far superior LTE capability too: the iPhone 5 LTE support is actually poor for some parts of the globe, including Europe. The improvement (in both 5C and 5S) is probably less visible if you're in the US, it's quite understandable that Apple would prioritise support for its home country in its first LTE phone, then widen it in the next model(s).
Even if it was, who cares? I have an iPhone 5 right now. When I'm using it I never think about the fact that it's "last years tech". The phone works great and is super fast. That's all I care about.

What is the Moto X or G? What are the lower cost Lumias? They're certainly not the latest and greatest tech, the best specs in a cheap phone. Yet no one seems to question the tech in those phones, or complain that they're selling "last years tech" as something new.
post #39 of 58
Quote:
Originally Posted by aircm1982 View Post

Interesting optimistic statement~

I am an Chinese and I read online Chinese news about reservation of iPhone 5s/c through China Mobile. It seems the story here is different from those reported by Chinese technology news agencies.

Based on their reports, the sale or reservation is totally not as hot as it states in this post. The reservation number is well below that of China Telecom (270k vs 150k) at same time point. I don't know which source is more true than the other. But presumably as a Chinese and know a little bit of Chinese customer behavior, I don't think iPhone 5s/c will reach the sale peak as seen before. This is because those people who really love iPhones or Apple products have already got the gears through gray market. Those who are still waiting are kind of people that not super fan of Apple, and they can pick up a samsung handset without hesitate due to the slightly lower price. Thus, the key I think will be the price. If the price is not attractive low, It is possible that iPhone 5s/c just a good sale phone rather than a hot sale phone.

Hopefully I am wrong. We will see.

In an interview with CNBC this morning, the CEO of China Mobile (appearing jointly with Tim Cook) said that there have been 'millions of preorders.'

I am sure he knows a bit more about this than you do, hanging out in some Chinese forums.

Why don't we wait for the actual facts, which we'll get soon enough.
post #40 of 58
Quote:
Originally Posted by realpaulfreeman View Post

aircm1982

Thanks for your input from a real Chinese viewpoint, its very valuable on these forums. Similar views have been expressed before by some of the analysts, so you may find not all of them are so out of touch with China.

See above.
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