Apple focuses on Asian market with launch day iPhones for China launch, NTT DoCoMo deal
During Tuesday's unveiling of the iPhone 5s and iPhone 5c, Apple announced that China will be part of the initial launch on Sept. 20, and finally inked a deal with Japan's largest cellular carrier NTT DoCoMo.
When the new iPhones hit store shelves on Sept. 20, China will be one of the regions to participate in the launch, a first for the country that seems indicative of Apple's strategy to expand into the Far East.
Apple currently sells the iPhone through partner carriers China Telecom and China Unicom, but has yet to tap into the over 740 million subscribers on China Mobile. That may soon change, however, as both the iPhone 5s and 5c will come in variants that support the TD-LTE bands China Mobile uses as its 4G backbone.
As for the Japanese market, Apple has finally secured an arrangement with NTT DoCoMo, the nation's largest carrier. Since the first iPhone model was released in 2007, DoCoMo has been reticent to adopt the smartphone, instead choosing to push yearly upgrades to a host of handsets made by local firms like Sharp and Panasonic.
In late 2012, the dominant Japanese telecom blamed the iPhone for the biggest loss of subscribers in one month, which came out to 40,800 people. DoCoMo subsequently said it was willing to negotiate with Apple in January as providers Softbank and KDDI continued to gain subscribers.
Apple's push into Asia is not unexpected given the growth potential of the region. On Monday, one analyst predicted that a deal with both China Mobile and DoCoMo would drive 35 million additional iPhone sales for 2014.
When the new iPhones hit store shelves on Sept. 20, China will be one of the regions to participate in the launch, a first for the country that seems indicative of Apple's strategy to expand into the Far East.
Apple currently sells the iPhone through partner carriers China Telecom and China Unicom, but has yet to tap into the over 740 million subscribers on China Mobile. That may soon change, however, as both the iPhone 5s and 5c will come in variants that support the TD-LTE bands China Mobile uses as its 4G backbone.
As for the Japanese market, Apple has finally secured an arrangement with NTT DoCoMo, the nation's largest carrier. Since the first iPhone model was released in 2007, DoCoMo has been reticent to adopt the smartphone, instead choosing to push yearly upgrades to a host of handsets made by local firms like Sharp and Panasonic.
In late 2012, the dominant Japanese telecom blamed the iPhone for the biggest loss of subscribers in one month, which came out to 40,800 people. DoCoMo subsequently said it was willing to negotiate with Apple in January as providers Softbank and KDDI continued to gain subscribers.
Apple's push into Asia is not unexpected given the growth potential of the region. On Monday, one analyst predicted that a deal with both China Mobile and DoCoMo would drive 35 million additional iPhone sales for 2014.
Comments
This so funny!
"Apple Unveils Panicked Man With No Ideas"
http://www.theonion.com/articles/apple-unveils-panicked-ideafree-man-at-launch-even,33814
When and where is the China keynote? Anyone blogging/translating/streaming? Is it in English (with Chinese subtitles)? Or simultaneously translated?
Talk about low-balling. This seems ridiculously low. The potential in China
seemsis massive.Apple will do well in Japan and Asia with the 5C as it will highly appeal to those consumers. It's the right product for that market and now Apple has the ability to move iPhones through the biggest phone companies in both countries... stand back!!
Although the price is too high the fun colors of the 5C will definitely appeal in Asian. The 5C and the gold 5S will likely become must have items.
The 5c is too expensive for China unless they launch a cheaper model only for emerging markets. Apple now has to launch in major markets to save face and makes its sales. But after a quarter of this sales are going to tank.
Apple will never, ever sell a phone, or tablet, or computer that is priced to compete in the third world mass market. They will sell stuff for the rich people in the third world and they will sell plenty enough in China.
The 5c is too expensive for China unless they launch a cheaper model only for emerging markets. Apple now has to launch in major markets to save face and makes its sales. But after a quarter of this sales are going to tank.
The benefit of Apple keeping the price of the 5C is high, is that the Apple brand will continue to hold an aspirational and lust-worthy status.
People in China and Japan will likely buy the 5C in droves because it will be seen as a more premium product versus Huwei and Samsun phones.
Add in the fact Apple will continue selling the iPhone 4 for about $400 (after tax which is an AMAZING bargain even in China) and Apple's sales are going to skyrocket there.
When and where is the China keynote? Anyone blogging/translating/streaming? Is it in English (with Chinese subtitles)? Or simultaneously translated?
Was wondering this too, its suppose to be tonight our time. I sold all my stocks today, but bought a few options on the weekly in case the China mobile deal is announced. I have very limited down side and still up side potential, but only for this week.
The benefit of Apple keeping the price of the 5C is high, is that the Apple brand will continue to hold an aspirational and lust-worthy status.
People in China and Japan will likely buy the 5C in droves because it will be seen as a more premium product versus Huwei and Samsun phones.
Add in the fact Apple will continue selling the iPhone 4 for about $400 (after tax which is an AMAZING bargain even in China) and Apple's sales are going to skyrocket there.
People wanting to buy and being able to afford it are 2 things. In china, there is no volume for a $550 phone, especially with the Nexus 4 selling at $200. The only thing I see they can get away with it is if carriers give it for free with contract
The good is Apple wont care if you buy a 5s or a 5c, they will have the same margins. But they won't have volume with this, and continu to lose market shares pretty much everywhere.
People wanting to buy and being able to afford it are 2 things. In china, there is no volume for a $550 phone, especially with the Nexus 4 selling at $200. The only thing I see they can get away with it is if carriers give it for free with contract
The good is Apple wont care if you buy a 5s or a 5c, they will have the same margins. But they won't have volume with this, and continu to lose market shares pretty much everywhere.
"no volume"? So when they sell millions in a weekend, will that make you less right?
"lose market shares"? If you're talking about bottom of the barrel "smart phones" then yes, they'll lose market share. Fortunately for Apple, all your wonderful words of wisdom makes no difference when they sell every single iPhone they make as fast as they can make it.
People wanting to buy and being able to afford it are 2 things. In china, there is no volume for a $550 phone, especially with the Nexus 4 selling at $200. The only thing I see they can get away with it is if carriers give it for free with contract
The good is Apple wont care if you buy a 5s or a 5c, they will have the same margins. But they won't have volume with this, and continu to lose market shares pretty much everywhere.
Apple is still an aspirational brand. Android is gaining a reputation for garbage hardware and loads of virii.
What a joke. Sales in China are already drying up and they come back with another phone that is still too expensive for 90% of Chinese consumers. "Fun" colors and "lust" factor do not off set cold hard cash. They better lock in China Mobile soon because my guess is this quarters sales are even worse than last quarter in China and they need something to off set that trend.
What a joke. Sales in China are already drying up and they come back with another phone that is still too expensive for 90% of Chinese consumers. "Fun" colors and "lust" factor do not off set cold hard cash. They better lock in China Mobile soon because my guess is this quarters sales are even worse than last quarter in China and they need something to off set that trend.
Yeah.... Apple is not even aware of that fact.... ?
Also need the apps to take advantage of it as well.
The 5c is too expensive for China unless they launch a cheaper model only for emerging markets. Apple now has to launch in major markets to save face and makes its sales. But after a quarter of this sales are going to tank.
Deluded wishful thinking by Fandroids?
People wanting to buy and being able to afford it are 2 things. In china, there is no volume for a $550 phone, especially with the Nexus 4 selling at $200. The only thing I see they can get away with it is if carriers give it for free with contract
The good is Apple wont care if you buy a 5s or a 5c, they will have the same margins. But they won't have volume with this, and continu to lose market shares pretty much everywhere.
" In china, there is no volume for a $550 phone,"
Really??? How come that according to Kantar, the iPhone has 22.4% of China market and that's with iPhones more expensive than the 5C?
The 5C price has probably been set high to begin with because Apple's market research (which may be a tad more reliable than yours...LOL) tells them that they can sell every 5C at this price point. They can easily bring the price down later, but meanwhile they can charge a premium price to amortise the R&D, design and tooling costs for the 5C
People wanting to buy and being able to afford it are 2 things. In china, there is no volume for a $550 phone, especially with the Nexus 4 selling at $200. The only thing I see they can get away with it is if carriers give it for free with contract
The good is Apple wont care if you buy a 5s or a 5c, they will have the same margins. But they won't have volume with this, and continu to lose market shares pretty much everywhere.
Also you seem to have not taken into account carrier subsidies. which would significantly reduce the upfront cost to users.
Carriers may prefer a high contract free price so they can attract customers to subscribe to contracts. So they may offer similar discounts as the US i.e. starting at $99 deposit for a 5C and $0 for a 4S.
We know that both NTT DoCoMo and China Mobile have been haemorrhaging their most profitable customers to their competitors who do offer the iPhone, so offering subsidies on the iPhone makes commercial sense for them.