Apple's iPhone sees tepid sales debut in China

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Comments

  • Reply 21 of 43
    Quote:
    Originally Posted by melgross View Post


    China Unicom is charging so much for the phone, it's not surprising that sales are slow.



    However, the lack of WiFi will supposedly be corrected with the next batch of phones.



    From what I've read, when Apple was manufacturing these phones, the Chinese government was still not allowing WiFi. They later changed their minds and now allow it. But the first batch of phones had already been manufactured and warehoused.



    I wonder what will happen to these early phones when the new ones are available?



    My answer is probably will be China Unicom's First Ever Buy 1 get 1 Free Sale!
  • Reply 22 of 43
    ajitmdajitmd Posts: 365member
    Nobody Chinese in the right mind would pay nearly $1000 for a phone with restrictions and no WiFi. Even if they want the real deal, they would prefer a gray market Hong Kong phone is unlocked and can use any GSM/3G card.



    As somebody mentioned, I hope China Unicom has paid for the crippled phones without WiFi. They can unload them at a promo price.



    This almost as bad as the spyware that the Chinese government wanted everybody to have.
  • Reply 23 of 43
    teckstudteckstud Posts: 6,476member
    Quote:
    Originally Posted by anakin1992 View Post


    holidays are coming. the sale will pick up.




    Do Buddhists celebrate Christmas? Or Hannukah? I forgot. \

    Must be Kwanza.
  • Reply 24 of 43
    aaarrrggghaaarrrgggh Posts: 1,609member
    Quote:
    Originally Posted by teckstud View Post


    Can they get the profit margin any higher? Shouldn't it cost less there as it's made over there so no fuel costs for transportation?

    Apple will release a wacko vesion of the iPhone like this yet won't release an AppleTaxed Netbook in US for $700? Go figure.



    Early rumors were that Apple was selling them to China Unicom for $450, significantly less than their $600 ASP in ROW. I think it has much more to do with the local market and local provider that sales are "tepid."



    Also worth noting, the AI story is lifted from WSJ, which has the most biased take on the story.



    While I don't understand the local market well, the fact that you can get the phone for free by pre-paying service for 10 months makes it sound fairly reasonable relative to the black-market options. Of course only a moron (or someone wanting a warranty) would buy the non-contract version from China Unicom when they can get it cheaper elsewhere.
  • Reply 25 of 43
    teckstudteckstud Posts: 6,476member
    Quote:
    Originally Posted by aaarrrgggh View Post


    Early rumors were that Apple was selling them to China Unicom for $450, significantly less than their $600 ASP in ROW. I think it has much more to do with the local market and local provider that sales are "tepid."



    Also worth noting, the AI story is lifted from WSJ, which has the most biased take on the story.



    While I don't understand the local market well, the fact that you can get the phone for free by pre-paying service for 10 months makes it sound fairly reasonable relative to the black-market options. Of course only a moron (or someone wanting a warranty) would buy the non-contract version from China Unicom when they can get it cheaper elsewhere.



    Not to mention that somehow I don't see the Chinese going all gaga over anything with a frenzy like we do in the West and that includes Japan.
  • Reply 26 of 43
    samabsamab Posts: 1,953member
    Quote:
    Originally Posted by mark2005 View Post


    And the Beijing Times reported that China Unicom had 140,000 pre-orders prior to sale. See iphonasia.com for better reporting on what's happening over there.



    I read the original news report in Chinese. I don't trust the numbers because all those pre-order "reservations" came before the carrier announced any pricing. And it's not isolated to just Chinese communist propaganda --- all the iphone pre-order "reservation" numbers across the globe are like that.
  • Reply 27 of 43
    very simple, everybody already owns the iPhone. I travel often to China and everybody has the 3G-3GS jail broken. With business associates in Beijing, Shanghai and Shenzhen but don't forget HK as well, the phone that everybody is using is the iPhone. Not to mention the countless imitations including the MINI iPhone, that as the salesman told me, not even Apple has it yet!!!

    If you asked how the Windows 7 launch went in China you would get the same answer, "tepid".

    All software programs are available in markets and they run from $1 USd to $5USD so, unless the world really enforces intellectual laws, the Chinese can get anything they want at a fraction of the cost without paying any royalty or anything. Surprised???
  • Reply 28 of 43
    Quote:
    Originally Posted by anakin1992 View Post


    holidays are coming. the sale will pick up.



    isaidso, do you the details on service plan?



    What holidays??? the Chinese do not celebrate Christmas, is New Year at the end of January.
  • Reply 29 of 43
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by MiamiJAG View Post


    What holidays??? the Chinese do not celebrate Christmas, is New Year at the end of January.



    As I recall, the gov’t is officially atheist. There is about 15% Christian population which may celebrate Christmas privately. The mainland doesn’t do decorations publicly but you may find them in Hong Kong and Macau. I think HK and Macau actually do observe the holiday, but don’t quote me on that.



    The Chinese New Year is at the end of the Lunar cycle, hence it’s varying date. I think last year it was in early February, but usually it falls in late January.
  • Reply 30 of 43
    mactrippermactripper Posts: 1,328member
    Quote:
    Originally Posted by MiamiJAG View Post


    very simple, everybody already owns the iPhone. I travel often to China and everybody has the 3G-3GS jail broken. With business associates in Beijing, Shanghai and Shenzhen but don't forget HK as well, the phone that everybody is using is the iPhone. Not to mention the countless imitations including the MINI iPhone, that as the salesman told me, not even Apple has it yet!!!

    If you asked how the Windows 7 launch went in China you would get the same answer, "tepid".

    All software programs are available in markets and they run from $1 USd to $5USD so, unless the world really enforces intellectual laws, the Chinese can get anything they want at a fraction of the cost without paying any royalty or anything. Surprised???





    I think because of the huge volume of people in China that it makes enforcing anything very difficult and why the Chinese government is rather heavy handed.



    Given their history, I don't know if I would want them to be able to enforce anything either.



    Next they will make Apple turn over all the customers of "illegal" iPhones to support sales of the wifi-less state controlled one.



    I bet a lot of Chinese use VOIP, if iPod Touch sales are off the chart, that would explain the issue why the wifi-less iPhone is a flop.



    Very complicated game going on, at least Apple can now advertise the iPhone, which should make grey market sales explode even further.
  • Reply 31 of 43
    mactrippermactripper Posts: 1,328member
    Quote:
    Originally Posted by solipsism View Post


    As I recall, the gov’t is officially atheist. There is about 15% Christian population which may celebrate Christmas privately. The mainland doesn’t do decorations publicly but you may find them in Hong Kong and Macau. I think HK and Macau actually do observe the holiday, but don’t quote me on that...



    Did you know the Chinese government lowered their prime lending rate once to 6.66%?



    The US usually it's adjusted a half or a quarter percent at a time, but 6.66%? In thirds? Very odd as quarters give more control than thirds.



    Some think it was a dig at Christianity and the US, since they never used thirds before.



    (666 is the number of the beast in Revelations)
  • Reply 32 of 43
    street price.. 5200RMB... unlocked 3GS at any multi-brand carrying cell phone shops.. free matte film for the glossy screen haters.



    I need to find out how China unicom's 3G network is like.. I'm still debating if an iPod touch is just as good if the network isn't on par with iphone's capability. And.. i'm NOT changing my number from China mobile to unicom..



    and YES. every other person has an iPhone here.
  • Reply 33 of 43
    btw. Christmas is not a celebration (religious) here, but it's commercialized, and advertised as a time to purchase goods, heavily.
  • Reply 34 of 43
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by teckstud View Post


    Do Buddhists celebrate Christmas? Or Hannukah? I forgot. \

    Must be Kwanza.





    There are no official religious holidays in China. The next holiday is the Chinese New Year. They do celebrate January 1st as well but it is not a significant holiday. Some people get the day off from work.



    There are not any gift giving holidays there either. During CNY the older generation gives money to the younger generation and a company will give annual bonuses to the long time employees.



    Gifts are really tricky in China and expensive gifts are not that common except for maybe birthdays.



    Giving someone a gift that comes with a monthly fee is kind of iffy in any culture unless the giver is going to pay that cost as well.
  • Reply 35 of 43
    Quote:
    Originally Posted by MacTripper View Post


    I think because of the huge volume of people in China that it makes enforcing anything very difficult and why the Chinese government is rather heavy handed.



    Given their history, I don't know if I would want them to be able to enforce anything either.



    Next they will make Apple turn over all the customers of "illegal" iPhones to support sales of the wifi-less state controlled one.



    I bet a lot of Chinese use VOIP, if iPod Touch sales are off the chart, that would explain the issue why the wifi-less iPhone is a flop.



    Very complicated game going on, at least Apple can now advertise the iPhone, which should make grey market sales explode even further.



    China does not enforces Intellectual Copyrights to stimulate the economy and is a cheap way of technology transfer, you have endless factories of illegal Polo shirts, Nike shoes or Soni, Armany, etc, selling them at 2-4 dollars, also is a way for Chinese people to think they are buying legit things (although they, deep down, know is not).

    So why enforce a law that will send out billions of dollars out of China and make products more expensive in their local market??

    They are not stupid, they know they are ripping it off in front of everybody and laughing all the way to the bank (their banks).
  • Reply 36 of 43
    hillstoneshillstones Posts: 1,490member
    The Chinese and Japanse are not interested in the iPhone. They have their own cool set of electronic devices. XBox doesn't do well either since they would rather support their own, Nintendo and Sony.



    The iPhone is probably too big too, they probalby want a smaller phone. Just look at the Japanese's strong desire for modding the hell out of a Color Classic, which was incredibly popular there. So popular they even got the much improved Color Classic II, and the US did not. They probably laugh at the iPhone saying, Look how big that phone is. Add that to the grey market, and Apple won't be selling out there.
  • Reply 37 of 43
    solipsismsolipsism Posts: 25,726member
    Quote:
    Originally Posted by hillstones View Post


    The Chinese and Japanse are not interested in the iPhone. They have their own cool set of electronic devices. XBox doesn't do well either since they would rather support their own, Nintendo and Sony.



    The iPhone is probably too big too, they probalby want a smaller phone. Just look at the Japanese's strong desire for modding the hell out of a Color Classic, which was incredibly popular there. So popular they even got the much improved Color Classic II, and the US did not. They probably laugh at the iPhone saying, Look how big that phone is. Add that to the grey market, and Apple won't be selling out there.



    If that were the case, then the iPhone wouldn?t be sold in those countries, nor would the gray market sales for the iPhone in China been reported to be in the millions. How many other cellphones are selling in Japan that are from outside the country? I know Nokia left not to long ago. There are reports that the super featured phones are not used by most people because they too esoteric and/or complex to be useful. The only think missing from the Japanese iPhone to make it really compete is the TV, but I recall reading that it was the number one selling smartphone in Japan for some month after the 3GS launched, but don?t quote me on that.
  • Reply 38 of 43
    Quote:
    Originally Posted by hillstones View Post


    The Chinese and Japanse are not interested in the iPhone. They have their own cool set of electronic devices. XBox doesn't do well either since they would rather support their own, Nintendo and Sony.



    The iPhone is probably too big too, they probalby want a smaller phone. Just look at the Japanese's strong desire for modding the hell out of a Color Classic, which was incredibly popular there. So popular they even got the much improved Color Classic II, and the US did not. They probably laugh at the iPhone saying, Look how big that phone is. Add that to the grey market, and Apple won't be selling out there.



    ??? Apple does very well in Japan and in China they just opened a store in Beijing. Every time I take my MacBook Air out in a meeting, all droll or on my next trip they show me their new Apple(s). In Japan I do not know about the iPhone but guess that NoCoMo or whatever it is called has the market cornered with its proprietary tech but in China the Toy du Jour is the iPhone or, just check out any restaurant or lounge and you'll see iPhone in hand as the essential accessory. I was surprised when the 3G came to market to see people with it just days after the official lunch. They use texting and phone mainly so, screw the apps.
  • Reply 39 of 43
    Quote:
    Originally Posted by solipsism View Post


    If that were the case, then the iPhone wouldn?t be sold in those countries, nor would the gray market sales for the iPhone in China been reported to be in the millions. How many other cellphones are selling in Japan that are from outside the country? I know Nokia left not to long ago. There are reports that the super featured phones are not used by most people because they too esoteric and/or complex to be useful. The only think missing from the Japanese iPhone to make it really compete is the TV, but I recall reading that it was the number one selling smartphone in Japan for some month after the 3GS launched, but don?t quote me on that.



    The phone certainly sells in Japan and you will see it around more and more as time passes by. I don't believe "popular" is the word for it yet for a few reasons and it certainly is not ubiquitous like it is in the US. First, the cheapest version of the phone (which is the 8GB 3G) is free and the 3GS models are thus discounted for a vast majority of buyers.



    It's also easy for the iPhone to rank high on sales charts literally because there are so many varied models of what amounts to the same phone, thus filling up the top charts with multiple versions of the same phone, iPhone included. But what people seem to miss when analyzing Japanese iPhone sales is that the iPhone is up against the Japanese cellphone standard, not against any particular model. Even if the iPhone is the number one selling model, if it only comprises of a very small percentage of sales, then it's actually making very small inroads into the market overall. It's still good for Apple's bottom line, but many analysts miss the big picture when it comes to evaluating the Japanese iPhone.
  • Reply 40 of 43
    asciiascii Posts: 5,936member
    I wouldn't buy it either if there was a new model with WiFi coming out shortly.



    That is one of the risks of doing business in a non-democracy. There are not all the checks and balances to slow down law changes and hopefully, just maybe, stop some of the bad ones. Imagine if Microsoft went to the US government and said they were developing their own WiFi standard so please could they please ban the current one. They would get laughed out of the room.
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