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Apple iPhone talks with Chinese carriers gone rocky - reports - Page 2

post #41 of 48
Quote:
In situations where there is no revenue-sharing (ie, contract-free, SIM-unlocked phones), the subsidy is gone, so the difference is recovered by charging the true full price they expected to realize from the phone in one up-front charge. That seems perfectly reasonable to me.

The only way I can think of justifying the subsidy is Apple's continued development of the iPhone's OS and apps. Apple will supply updates to iPhone users for no additional charge. But that does not mean that Apple intended to absorb the cost of that continued development.

Quote:
The Chinese doesn't care if they have an "REAL" iPhone!~

Do you have any proof of this besides your own opinion?
post #42 of 48
Apple, despite being a great company, has already received plenty of flack, but to expand to China would be a huge dissapointment.

China does not have any laws or regulations as to the copyright or quality of products. Just look at the many toy recalls that are going on right now and you will see why. If we continue to export manufacturing like that, the US will no longer be a world power!
post #43 of 48
Quote:
Originally Posted by Crtaylor View Post

Apple, despite being a great company, has already received plenty of flack, but to expand to China would be a huge dissapointment.

China does not have any laws or regulations as to the copyright or quality of products. Just look at the many toy recalls that are going on right now and you will see why. If we continue to export manufacturing like that, the US will no longer be a world power!


Wrong, wrong. The more we export the more we are exposed to these lapses in manufacturing. This situation did not happen over night, they have always been a part of Chinese lower cost manufacturing. At least people now are waking up to what they are paying for. I say let them clone iPhones, and it will be found that the clones don't work as expected. We export work to China and we have found that the Chinese company will not buy Chinese knockoffs for their plant. They want to buy from our American suppliers because those products actually work as expected and advertised. Apple has nothing to worry about cloning of the iPhone, only that said cloning will be the best advertisement for Apple quality that will cost Apple nothing.
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post #44 of 48
Many people do not understand the Chinese people's appetite for luxury goods. Chinese people like to show off their wealth. Flashy mobile phones are one of the items that they use for that purpose.

Expensive mobile phones are quite common in China. Look at Nokia N95 and the 8800 series, LG Prada and HTC high end PDA phones. They all retail at close to or over US$1000 in China. Not to mention Vertu phones which are sold for more than US$10K. They are selling quite well in China too. Go to the Vertu website (www.vertu.com), you can see that the site is available in only 3 languages - English, Russian and Chinese. This tells a lot on how the important the Chinese (and Russian) market is.

Apple can simply price the iphone at around US$1000 in China and sell them without contract. They may make less money this way but it is a good way to crack open the Chinese market and raise awareness of the brand. This is key if Apple wants to sell more ipods and Macs in China.

Many people here mentioned about fake products in China. It isn't an issue because only those people who do not have money to buy the real things would buy them. People who can affort an iphone will try very hard to make sure what they get are real. (look at the Louis Vuitton shop in Paris. It is swamped by bus-loads of Chinese tourists because the LV bags sold there are garranteed real.)

The vast size of the Chinese market can distort common sense. There are close to 1.4 billion people in China. Mobile phone users are close to 500 million. If 2% of the mobile phone users were to get an iphone, Apple can sell 10 million. If I were Steve Jobs, I'd do anything to pry open this market.
post #45 of 48
Quote:
Originally Posted by TenoBell View Post

The only way I can think of justifying the subsidy is Apple's continued development of the iPhone's OS and apps. Apple will supply updates to iPhone users for no additional charge. But that does not mean that Apple intended to absorb the cost of that continued development.

I didn't think that anything I had written was necessarily in conflict with that position.
post #46 of 48
Chinese consumers (now there's an oxymoron!) will not shell out the big bucks, stupid Americans do for the iPhone. You can go to any street market within the China (Shanghai, Wuxi, Shenzen, etc) and pick up an iClone, which sports better features and more flexibility for a fraction of the cost (I saw one for $40USD). Works with ALL phone carriers (up yours ATT).

Patent infringement? What's that? Must be lost in translation. And the Chinese culture dictates denial of wrongdoing at all levels.

Why Apple continues to follow the mantra of keeping all their products proprietary, instead of licensing the technology to other vendors, is beyond me. Apple has so many great, innovative products and then limits their success by making them Apple-only, or by having exclusive sweetheart deals with service providers. Apple could have been bigger than MS and IBM put together, many times over already.
post #47 of 48
Quote:
Originally Posted by silencedgd View Post

Patent infringement? What's that? Must be lost in translation. And the Chinese culture dictates denial of wrongdoing at all levels.

Well now, the head of the Chinese equivalent of the FDA was executed for dereliction of duty and accepting bribes following the scandal this past year where contaminated food products were being exported to the West.
post #48 of 48
Business Week: China's iPhone Fans Find a Way

Want to buy an iPhone in Beijing? Talk to Liu Yong. Apple's wonder isn't legally available in China, but Liu, who operates an electronics shop in the Zhongguancun neighborhood close to the capital's premier universities, has plenty of inventory and is more than happy to sell you one for about $680. But buy now, he warns, because prices are heading upward as demand for the world's coolest phone is increasing.

With more than 160 million Chinese surfing the Internet, it's easy for people to follow the latest trends in the U.S. Moreover, many upscale Chinese regularly upgrade their phones to the latest high-end model. And there's now nothing more high-end than Steve Jobs' creation. "There is a real pent-up demand for the iPhone," says Shaun Rein, marketing manager at China Market Research Group in Shanghai. "The iPhone is considered by many Chinese to be the best phone out there."

Finding people selling iPhones in Chinese cities, in districts such as Beijing's Zhongguancun or in the big IT shopping centers in Shanghai, is a snap. Da Lin, a Beijing resident, got his first iPhone from Liu Yong just days after its U.S. debut and has since purchased "a dozen or so" for Chinese friends. He says; but there's no beating the envious oohs and ahhs he gets when he shows it to friends. "Every time I go out for dinner and put it on the table, it's in everyone's hands," he says. "Everyone wants to play with it."
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