Wow, they really are starting from scratch. You have to ask is that market quite as savvy as analysts predict.
Capitalist market under the thumb of a communist regime is always going to be stifled. Not only that but unlike a free market it works to deepen the class separation even further than you see in your typical communist country (if there is such a thing).
A big reason China keeps loaning the US money is because an economic collapse in the US would take away a huge part of their market. A capitalist market under a communist regime really can't stand on it's own, it needs other capitalist markets that will buy into it.
Wrong. The average salary in China is like 2k. That means an iPhone costs nearly half their yearly salary.
While the average may be true (who knows anyway, it's not like those things are well documented in China) there are many very wealthy people in China who'd have no problem buying the iPhone, or 100. They even lend money to the US after all, and keep buy up things like Facebook.
However yes those people probably already have an iPhone from other sources and wouldn't want some castrated version anyway. Let's see when a new model comes out, then it should be interesting...
The Chinese market is a completely different beast. It's quite the anomaly. Flooded with knockoffs and whatever novel effect their combination of Communism/controlled-Capitalism has on consumer buying power. I'm guessing it's not all good.
Read an interesting article yesterday about Apple underestimating Chinese customers' preferences and thus being the reason for complete failure in the market
don't know that the blame is all on Apple. The Gov't restrictions may have nixed a few things. Also, localized apps are due to local app developers. they are not Apple offerings. so we would have to examine whether the SDK is available to those in China to make localized apps.
And the article is rather misleading, especially the headline. it makes it sound like only 5 phones have sold period. but this site is a bit like looking at only the Radio Shack sales in the US and not the Best Buy, ATT Store and Apple Store sales. And the numbers aren't shocking when there's a heavy market for phones bought elsewhere and unlocked so you have wifi etc.
Honestly I feel like half the reason that an iphone deal was done in China at all is because to many it seemed absurd that the phones are made there but can't be legally bought there.
WiFi: nothing to do with Apple, soon to be corrected. Pricing: set by the Chinese carrier, easily corrected if they judge that competition with the gray market requires it.
Not really very complicated, and scarcely an indictment of Apple's hardware or marketing savvy. If we see an official Chinese iPhone in the near future that is comparable in capabilities and pricing to the gray market phones, then it will be time to take the measure of Apple's fortunes in that market.
As it stands, the poor sales were entirely inevitable.
Pricing the locally produced iPhone so high, even after considering the absence of any WiFi internals, may hint to an answer, because any pricing had to be set by the Chinese.
Most Chinese companies are partially government owned, and here you have to keep in mind the communist definition of government as the one who keeps for the state all means of production and every market decision.
Apple was supposed to help spread the chinese version of 3G, and probably the chinese version of WiFi as well, but with the current deal it is doing neither.
Pricing the locally produced iPhone so high, even after considering the absence of any WiFi internals, may hint to an answer, because any pricing had to be set by the Chinese.
Most Chinese companies are partially government owned, and here you have to keep in mind the communist definition of government as the one who keeps for the state all means of production and every market decision.
Apple was supposed to help spread the chinese version of 3G, and probably the chinese version of WiFi as well, but with the current deal it is doing neither.
I'm not familiar with this site but maybe it should read: Taobao sells entire iPhone inventory! I know that if I were buying a new iPhone here, I wouldn't go to Ebay. I'd go to AT&T or the Apple Store. Who cares how well a single store sold a product. All that matters is how many they sold total. I know that is still a low number, but as others have said who wants the current model when they will be releasing a new model very soon.
Very simple, they prefer the pirate iPhones (the real ones), they are very cheap, no contracts, they pay as they go and they, surprise: can afford it like that. So maybe the manufacturer is selling some (millions) of iPhones out the back door as is a very popular phone with the young crowd and expats.
In China credit card use is minimal, everything is cash so good luck with the AppStore!
Read an interesting article yesterday about Apple underestimating Chinese customers' preferences and thus being the reason for complete failure in the market
As a couple others have pointed out the iPhone has already been a success in China since the original iPhone. The main problem now is the lack or WiFi while unlocked iPhones can be had for less money with WiFi on grey markets.
What I want to see is data from the S. Korean iPhone sales. Since they lock out IMEIs they font have a thriving underground market for iPhones like China. So far, the reports look promising for Apple yet the nuumber of iPhones currently used in China will be considerably higher.
Quote:
Originally Posted by hezekiahb
How in the world does Apple justify such a high price, shame on them. The iPhone is made in China for crying out loud!
What does that have to do with anything? I assure you the tariffs for an outside company to do business in China outweight the shipping cost from the country.
Yeah... Thanx to the outrageous price and the lack of wifi
Here's a test of your knowledge. Can you explain why Apple released the iPhone in China with WiFi disabled? Why would they do that? Your answer will determine just much you do or don't know about the situation.
Why pay more for a phone that has less functionality? For the people who will spend $1000 on a phone, they have the money to go to Hong Kong (which is part of China), Japan, or any nearby country to buy an official unlocked iPhone. Heck, the round trip ticket to the US is less than $1000!
Here's a test of your knowledge. Can you explain why Apple released the iPhone in China with WiFi disabled? Why would they do that? Your answer will determine just much you do or don't know about the situation.
I await your answer.
It was a government dictate, that was recently rescinded.
Comments
Wow, they really are starting from scratch. You have to ask is that market quite as savvy as analysts predict.
Capitalist market under the thumb of a communist regime is always going to be stifled. Not only that but unlike a free market it works to deepen the class separation even further than you see in your typical communist country (if there is such a thing).
A big reason China keeps loaning the US money is because an economic collapse in the US would take away a huge part of their market. A capitalist market under a communist regime really can't stand on it's own, it needs other capitalist markets that will buy into it.
Wrong. The average salary in China is like 2k. That means an iPhone costs nearly half their yearly salary.
While the average may be true (who knows anyway, it's not like those things are well documented in China) there are many very wealthy people in China who'd have no problem buying the iPhone, or 100. They even lend money to the US after all, and keep buy up things like Facebook.
However yes those people probably already have an iPhone from other sources and wouldn't want some castrated version anyway. Let's see when a new model comes out, then it should be interesting...
What are they? They prefer buttons? Don't like fart apps?
Apparently not... could explain the rise of China and the decline of the west, eh?
Originally Posted by teckstud
What are they? They prefer buttons? Don't like fart apps?
Apparently not... could explain the rise of China and the decline of the west, eh?
Hmmm, interesting point, I am ashamed to say I have the fart app.
WOW, they are really flying off the shelves!
Read an interesting article yesterday about Apple underestimating Chinese customers' preferences and thus being the reason for complete failure in the market
don't know that the blame is all on Apple. The Gov't restrictions may have nixed a few things. Also, localized apps are due to local app developers. they are not Apple offerings. so we would have to examine whether the SDK is available to those in China to make localized apps.
And the article is rather misleading, especially the headline. it makes it sound like only 5 phones have sold period. but this site is a bit like looking at only the Radio Shack sales in the US and not the Best Buy, ATT Store and Apple Store sales. And the numbers aren't shocking when there's a heavy market for phones bought elsewhere and unlocked so you have wifi etc.
Honestly I feel like half the reason that an iphone deal was done in China at all is because to many it seemed absurd that the phones are made there but can't be legally bought there.
'The App Store will need to add new payment options and more localized content to win more users in China.'
Okay, I can understand the lack of localized content, but what other forms of payment do they need? Do they not have prepaid gift cards?
Not really very complicated, and scarcely an indictment of Apple's hardware or marketing savvy. If we see an official Chinese iPhone in the near future that is comparable in capabilities and pricing to the gray market phones, then it will be time to take the measure of Apple's fortunes in that market.
As it stands, the poor sales were entirely inevitable.
Most Chinese companies are partially government owned, and here you have to keep in mind the communist definition of government as the one who keeps for the state all means of production and every market decision.
Apple was supposed to help spread the chinese version of 3G, and probably the chinese version of WiFi as well, but with the current deal it is doing neither.
My guess is Apple is being castigated by China.
http://translate.googleusercontent.c...f1theJ05EkoK5g
Pricing the locally produced iPhone so high, even after considering the absence of any WiFi internals, may hint to an answer, because any pricing had to be set by the Chinese.
Most Chinese companies are partially government owned, and here you have to keep in mind the communist definition of government as the one who keeps for the state all means of production and every market decision.
Apple was supposed to help spread the chinese version of 3G, and probably the chinese version of WiFi as well, but with the current deal it is doing neither.
My guess is Apple is being castigated by China.
No they are not
Okay, I can understand the lack of localized content, but what other forms of payment do they need? Do they not have prepaid gift cards?
Cash is King in China.
In China credit card use is minimal, everything is cash so good luck with the AppStore!
WOW, they are really flying off the shelves!
Read an interesting article yesterday about Apple underestimating Chinese customers' preferences and thus being the reason for complete failure in the market
As a couple others have pointed out the iPhone has already been a success in China since the original iPhone. The main problem now is the lack or WiFi while unlocked iPhones can be had for less money with WiFi on grey markets.
What I want to see is data from the S. Korean iPhone sales. Since they lock out IMEIs they font have a thriving underground market for iPhones like China. So far, the reports look promising for Apple yet the nuumber of iPhones currently used in China will be considerably higher.
How in the world does Apple justify such a high price, shame on them. The iPhone is made in China for crying out loud!
What does that have to do with anything? I assure you the tariffs for an outside company to do business in China outweight the shipping cost from the country.
Yeah... Thanx to the outrageous price and the lack of wifi
Here's a test of your knowledge. Can you explain why Apple released the iPhone in China with WiFi disabled? Why would they do that? Your answer will determine just much you do or don't know about the situation.
I await your answer.
Here's a test of your knowledge. Can you explain why Apple released the iPhone in China with WiFi disabled? Why would they do that? Your answer will determine just much you do or don't know about the situation.
I await your answer.
It was a government dictate, that was recently rescinded.