Apple's China reservation system again cuts down on lines, scalpers for iPhone 5

Posted:
in iPhone edited January 2014
As the iPhone 5 went on sale Friday, lines at retail stores were again subdued compared to previous product launches, as Apple's new reservation system prevented excitement from turning into potentially dangerous crowds.

Reacting to concerns over relatively small lines at Apple's retail locations in China on Friday, Gene Munster of Piper Jaffray reminded investors that Apple's reservation system was designed to avoid crowds.

It's the same scenario as a week ago, when the iPad mini debuted in China to few crowds at Apple's stores. That product was also launched with Apple's reservation-only system, which also helps to prevent scalpers from getting their hands on the company's latest devices.

The system was instituted after the iPhone 4S launch in January of this year was disrupted by an unruly crowd in Beijing. The crowd prevented Apple from opening its store in Sanlitun, and the company decided to postpone the launch of the iPhone 4S in Beijing and Shanghai.

A scuffle also occurred in mid-2011 for the launch of the iPad 2 and white iPhone 4, where customers shook a glass door and shattered it at the Sanlitun Apple Store.

China


As of Monday, preorders for the iPhone 5 through carrier China Unicom were at more than 300,000 ahead of the product launch, suggesting that demand was strong. Munster noted Friday that China Unicom saw 200,000 preorders for the iPhone 4S, suggesting demand is even greater for Apple's latest model.

Munster also cited increased distribution as another potential cause for small lines for Friday's launch. He believes that Apple has about two times as many points of sale for the iPhone 5 as it did when the iPhone 4S debuted.

The iPhone 4S only launched on one carrier, while the iPhone 5 is available on two: China Telecom, in addition to China Unicom.

Munster estimates that Apple will sell 45 million iPhones in the December quarter, with between 4 million and 5 million of those coming from China. Piper Jaffray has reiterated its "overweight" rating for AAPL stock, with a price target of $900.
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Comments

  • Reply 1 of 41
    I'm confused. Will this raise or lower the stock price¿
  • Reply 2 of 41
    antkm1antkm1 Posts: 1,441member

    Quote:

    Originally Posted by AppleInsider View Post



    The iPhone 4S only launched on one career, while the iPhone 5 is available on two: China Telecom, in addition to China Unicom.


    The Automated Slave needs an editor.  Don't you guys re-read your posts???

  • Reply 3 of 41


    Originally Posted by antkm1 View Post

    The Automated Slave needs an editor.  Don't you guys re-read your posts???


     


    I can't seem to save my edits, otherwise I would have fixed that already… Hmm.

  • Reply 4 of 41


    They should create chaos because orderly sale will not hype up the product, and sales suffer.  People needs to feel that they own the one of the few phones around in order for them to get excited.  This was what Jobs understood, and Cook to learn about.  Another thing great about the Apple New Product introduction was that new products were spaced out a few months.  Even everyone wants to contribute their hard earned money to Apple, It is not smart for them to squeeze the last dollar too often from their loyal customer base.  You need them to replenish the piggy bank first before you introduce another new product.  Case in point: iPhone and shortly afterwards iPad mini. 

  • Reply 5 of 41
    Listen to Munster, he'll tell you how it really is.
  • Reply 6 of 41
    tzeshantzeshan Posts: 2,351member
    Why does Apple China store charge $850 for the iPhone? Is this price gouging?
    http://store.apple.com/cn/browse/home/shop_iphone/family/iphone5?cid=aos-cn-iphone5-home-herobuy

    RMB 5288 = $850

    In US iPhone 4 costs $650
  • Reply 7 of 41

    Quote:

    Originally Posted by tzeshan View Post



    Why does Apple China store charge $850 for the iPhone? Is this price gouging?

    http://store.apple.com/cn/browse/home/shop_iphone/family/iphone5?cid=aos-cn-iphone5-home-herobuy

    RMB 5288 = $850

    In US iPhone 4 costs $650


    it is an import, thus china gov will charge tariff on it. in US, there is sale tax on buying iphone. depending on where you are, for iPhone 5 16g, it is about $700 in US. but i am not sure whether the diff of $150 is solely by tariff. 

  • Reply 8 of 41

    Quote:

    Originally Posted by PhilBoogie View Post



    I'm confused. Will this raise or lower the stock price¿


    Lower, the analysts who are turning bearish expect long lines for their revenue forecasts.

  • Reply 9 of 41
    Sell your AAPL now !!! Apple is doomed
  • Reply 10 of 41

    Quote:

    Originally Posted by rsdofny View Post


    They should create chaos because orderly sale will not hype up the product, and sales suffer.



     


     


    But in the case of China, the chaos was causing riots, fights and potential injury to buyers and store staff. Thus why they want to avoid such chaos anymore. That they are also screwing with the major reseller market in the area is the icing on the cake. 


     


    Pity they won't use such a system in the US. NYC and LA in particular are a major area for similar resellers to try to get stock

  • Reply 11 of 41
    Doom, doom, doom....hear ye now....apple is doomed, only one Chinese lady turned up to buy an iphone5
  • Reply 12 of 41
    solipsismxsolipsismx Posts: 19,566member
    rsdofny wrote: »
    They should create chaos because orderly sale will not hype up the product, and sales suffer.

    1) The riots and scalpers don't help the product image. I'm glad Apple finally did something that is working.

    2) The iPhone 5 has been out for 3 months now. If you are Chinese and possibly wanted an iPhone you would have wanted it before getting pushed out of line, having to wait 5x as long due to scalpers, and without fear or getting sent to hospital. If you are outside of Chinese and weren't interested in buying it yet I doubt some riots in China will change your mind.
  • Reply 13 of 41

    Quote:

    Originally Posted by PhilBoogie View Post



    I'm confused. Will this raise or lower the stock price¿


     


    Yes.

  • Reply 14 of 41
    rsdofny wrote: »
    Another thing great about the Apple New Product introduction was that new products were spaced out a few months. 

    This is part of where the reselling came in. When it was six months between the US launch and places like china, scores of folks would just smuggle in phones. Apple is shortening the window to stop that kind of nonsense. They don't want folks paying double and treble the legit cost for a phone etc
  • Reply 15 of 41
    cameronjcameronj Posts: 2,357member

    Quote:

    Originally Posted by tzeshan View Post



    Why does Apple China store charge $850 for the iPhone? Is this price gouging?

    http://store.apple.com/cn/browse/home/shop_iphone/family/iphone5?cid=aos-cn-iphone5-home-herobuy

    RMB 5288 = $850

    In US iPhone 4 costs $650


    I'm not sure you know the meaning of the phrase price gouging.  

  • Reply 16 of 41
    lkrupplkrupp Posts: 10,557member
    Other pundits are pouncing on "line-gate" as THE cause of yesterday's sell off. Now I am seeing articles about "Apple's China problem" and what Apple must do to recover from this failure.

    My question is do big investors like hedge and pension funds actually take action based upon this kinds of punditry? I hope not. Then there are the rumors that the trading computers are sitting there loaded up with buy transactions the second AAPL reaches $500.
  • Reply 17 of 41
    gatorguygatorguy Posts: 24,176member

    Quote:

    Originally Posted by lkrupp View Post



    Other pundits are pouncing on "line-gate" as THE cause of yesterday's sell off. Now I am seeing articles about "Apple's China problem" and what Apple must do to recover from this failure.


    Articles on Apple's struggle to become a market leader in China go back quite awhile. They've not yet been very successful there, relatively speaking, and it's not new news. If you've missed documentation about "Apple's China problem" from months and even years past then you weren't watching.


     


    Simply Google "Apple struggles in China". You'll find market news outlining Apples issues there dating all the way back to 2008.

  • Reply 18 of 41
    Piper Jaffray has reiterated its "overweight" rating for AAPL stock, with a price target of $900.

    I support those who says the truth about AAPL . I hate those who lower their AAPL target price based on nothing . Even a primary school students can say AAPL is bad when they see AAPL dropped that much . I praise those who say the truth that can't be guessed or tell from current situation .
  • Reply 19 of 41
    Apple is down because all the wealthy investors, not pension and mutual funds, are selling off so they can buy gold due to the upcoming doom next week.
  • Reply 20 of 41


    Originally Posted by Stourque View Post

    Apple is down because all the wealthy investors, not pension and mutual funds, are selling off so they can buy gold due to the upcoming doom next week.


     


    THE MAYANS SAW THE FISCAL CLIFF COMING A MILLENNIA AGO. IT IS NOT THE WORLD, BUT APPLE* ITSELF THAT IS DOOMED.


     


    *"What about all the other effects of the fiscal cli—" NO JUST APPLE.

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