Apple expected to begin selling iPhone 6 in China on October 10
Reports from the People's Republic of China indicate that Apple is preparing to introduce iPhone 6 and iPhone 6 Plus on October 10, following final approval from the Ministry of Industry and Information Technology.
A series of reports from China have pointed to iPhone 6 sales beginning on Friday, October 10. The date was most recently supported by a store preparation timeline presented to retail employees in an internal training course.
The information points to product readiness and employee training that begins October 7 to support initial sales three days later.
Apple wants to begin selling its new iPhone 6 in China to include initial sales in its fiscal Q1 holiday quarter, which will be compared to last year's blockbuster quarter with revenues of $57.6 billion, $8.8 billion of which came from Greater China (a super region that includes Hong Kong and Taiwan, both of which are already selling the new iPhone 6 models).
However, a report by Bloomberg stated that under pressure of Chinese state regulators, carriers were lowering subsidies for new phone buyers.
That report stated that Chinese subsidies are paid over the length of users' contracts in the form of a monthly rebate applied to the user's mobile service cost, rather than as a lump sum when the user signs their contract, as is common in the U.S.
Due to the changes being mandated in China, the effective hardware price for users will double. However, the initial price users pay to get a new phone will actually be lower, starting at 4488 yuan ($732) rather than 5288 yuan. The carriers are said to be reducing their monthly discounts on voice service from 194 yuan ($31.66) to 136 yuan ($22.20).
While this move significantly reduces the overall subsidy (costing end users an additional 592 yuan ($97) over the length of their two year contract), it makes the initial purchase more affordable (800 yuan or $131 cheaper up front), which is virtually the opposite of American-style carrier subsidies.
Black market iPhone 6 units have been smuggled into the country to sell for twice the price, at around $1,900, while iPhone 6 Plus models can fetch as much as $3,250. The most popular colors are gold and space grey, which can command up to a $500 premium.
Those licenses -- which certify that the device is compatible with mobile networks -- are issued by the Telecom Equipment Certification Center, China's equivalent of the U.S. FCC.
Last year, Apple launched iPhone 5s and 5c in China at the same time as the U.S. and a series of other major markets. This year, the approval delay in China meant Apple's initial report of 10 million iPhone 6 models in three days excluded one of Apple's largest markets.
One major difference in the two launches is that China's largest carrier China Mobile now has its TDD LTE network in place, after its initial activation earlier this year. Apple is also now supporting the additional 41 TDD LTE band (as well as a series of other new LTE bands) on the new models.
A series of reports from China have pointed to iPhone 6 sales beginning on Friday, October 10. The date was most recently supported by a store preparation timeline presented to retail employees in an internal training course.
The information points to product readiness and employee training that begins October 7 to support initial sales three days later.
Apple wants to begin selling its new iPhone 6 in China to include initial sales in its fiscal Q1 holiday quarter, which will be compared to last year's blockbuster quarter with revenues of $57.6 billion, $8.8 billion of which came from Greater China (a super region that includes Hong Kong and Taiwan, both of which are already selling the new iPhone 6 models).
Lower carrier subsidies will appear to make iPhone 6 cheaper
In the report by TechWeb, the 4.7 inch iPhone 6 was reported to be priced starting at 5288 yuan ($863, the same starting price as last year's iPhone 5s), while the 5.5 inch iPhone 6 Plus is expected to start at 6288 yuan ($1026).However, a report by Bloomberg stated that under pressure of Chinese state regulators, carriers were lowering subsidies for new phone buyers.
That report stated that Chinese subsidies are paid over the length of users' contracts in the form of a monthly rebate applied to the user's mobile service cost, rather than as a lump sum when the user signs their contract, as is common in the U.S.
Due to the changes being mandated in China, the effective hardware price for users will double. However, the initial price users pay to get a new phone will actually be lower, starting at 4488 yuan ($732) rather than 5288 yuan. The carriers are said to be reducing their monthly discounts on voice service from 194 yuan ($31.66) to 136 yuan ($22.20).
While this move significantly reduces the overall subsidy (costing end users an additional 592 yuan ($97) over the length of their two year contract), it makes the initial purchase more affordable (800 yuan or $131 cheaper up front), which is virtually the opposite of American-style carrier subsidies.
Black market iPhone 6 units have been smuggled into the country to sell for twice the price, at around $1,900, while iPhone 6 Plus models can fetch as much as $3,250. The most popular colors are gold and space grey, which can command up to a $500 premium.
Final certifications and approvals
The two new models achieved China Compulsory Certification last week, but reportedly still needed network access licenses before they can go on sale.This year, the approval delay in China meant Apple's initial report of 10 million iPhone 6 models in three days excluded one of Apple's largest markets
Those licenses -- which certify that the device is compatible with mobile networks -- are issued by the Telecom Equipment Certification Center, China's equivalent of the U.S. FCC.
Last year, Apple launched iPhone 5s and 5c in China at the same time as the U.S. and a series of other major markets. This year, the approval delay in China meant Apple's initial report of 10 million iPhone 6 models in three days excluded one of Apple's largest markets.
One major difference in the two launches is that China's largest carrier China Mobile now has its TDD LTE network in place, after its initial activation earlier this year. Apple is also now supporting the additional 41 TDD LTE band (as well as a series of other new LTE bands) on the new models.
Comments
I'm really happy for them. For me, the nearest Apple Store is 175miles away, the nearest AT&T store, 55 miles. I can't get a live person there to answer the phone to let me know if they even have the 6 & 6+ on display to compare. I've checked many AT&T stores in most major cities of the state & all say, "Out of Stock!" I hope China has a better experience of availability. I'll be eligible for upgrade Oct. 5; hope to get by Feb.
Excellent to see them able to get this market moving.
I wonder what effect it might have
on backorders and order times elsewhere...
What's interesting with all this bendgate nonsense is Apple stock was up almost 3% on Friday recovering most of what it lost on Thursday. Media smear campaign doesn't seem to be working.
Hasn't it been largely debunked by now? I think the media were
abandoning it in favor of 8.01-gate, which Apple was quick to ruin for them, too.
Seems there's almost nothing left for them besides berating Apple for calling it the "plus".
Not much. My guess is Apple has a lot of phones produced for China sitting in warehouses, ready to go. They don't just grab phones off the assembly and throw them on the closest airplane no matter the destination, allocations are made well before launch.
All 7000 of my Apple shares are smiling! And my 275 AAPL debit call spread contracts are positively giddy! I'm going to make some decent gains over the next three, six, 12 months!
Excellent to see them able to get this market moving.
I wonder what effect it might have
on backorders and order times elsewhere...
Not much. My guess is Apple has a lot of phones produced for China sitting in warehouses, ready to go. They don't just grab phones off the assembly and throw them on the closest airplane no matter the destination, allocations are made well before launch.
hmmm...vastly insufficient allocations, apparently.
What's interesting with all this bendgate nonsense is Apple stock was up almost 3% on Friday recovering most of what it lost on Thursday. Media smear campaign doesn't seem to be working.
Did you know that if you take two iPhone 6's and place them end to end, they have a tendency to totally snap in half right here?
Many thanks to the author of this article for this very exciting breaking news. I was upset to read just the other day that China did not have the iPhone. I have designed specialty iPhone covers in a Han Asia Portfolio and was looking forward to introducing my work to international sites and the China market for iPhone covers. You have made my day to say the least with this wonderful news. I did not know what to think and of course would like to see China have what everybody else in our big, round world has: The iPhone 6 phones and outrageously beautiful covers to protect them! Please visit my shop and see what I am offering: www.zazzle.com/joyce_dade_art* Many designs are available including Tough, Touch Xtreme, Wood and iPhone 6 Plus. The biggest selection in the world to satisfy everyone's need for beauty and protection.
When you have over 10,000,000 people all trying to get their hands on your product at the same time, any preparation you make will turn out insufficient.
That being said, both of my local Apple stores are showing stock on the 6, which is a lot better than when I was trying to get my hands on an iPhone 5 two years ago.
Great news for Q1 earnings.
Go Apple Go Go Go.
And by media smear campaign, you mean the appearance of a legitimate representation of an inherent flaw in the structural build of the 6 and 6+, followed by collaborative PR by companies that Apple has in its pocket to encourage misinformed consumers to continue buying flawed devices, then followed by an entirely subjective plan to replace devices that leaves little recourse for people who have spent hundreds of dollars. I think you've mixed up your conspiracies. If you like a high quality product why aren't you holding Apple accountable for a legitimate mistake. This do-no-harm ideology is bad for everyone.