Editorial: Why Apple isn't 'slashing prices' in China

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Comments

  • Reply 21 of 35
    Johan42Johan42 Posts: 163member
    knowitall said:
    Johan42 said:
    knowitall said:
    As I indicated in earlier posts the iPhones are about twice as expensive as they should be (including a healthy profit margin).
    It’s completely evident that Apple asks way to much for its products, just look at the billions of profit every month (that it burns away to even further insult its buyers).
    Who else will pay for their exorbitant luxury if their customers don’t?
    I don't know about that, engineers (the people doing the actual work) working for Apple do not get exorbitant salaries as far as I know.
    My point exactly.
  • Reply 22 of 35
    Face
  • Reply 23 of 35
    Good article, DED does his research! A little off topic, I went to The Verge website and the supposed tech writer Vlad wrote this screed about Iphone camera and Apple lack of innovation. I left a comment referencing Vlad and article and made some points on Apple innovation and was banned for supposedly bashing Vlad. What type of shady operation is the The Verge anyway?
    watto_cobra
  • Reply 24 of 35
    clarker99clarker99 Posts: 230member
    avon b7 said:
    avon b7 said:
    "The state itself knows that Apple has very limited real competition with commodity Android  such as Huawei. China's affluent class uses iPhones, including Huawei's own executives, the company's brand ambassadors, and its public relations contractors-- even China's orchestrated propaganda campaigns against Apple were tweeted out by iPhone users. Apple's sales account for virtually all premium priced phones in the country. Globally, Apple sells the majority of all phones priced above $600"

    Reuters reported the opposite to what is implied here regarding premium competition in China:

    "Chinese smartphone firms jazz up products, seize turf in home market from Apple"


    https://www.reuters.com/article/us-china-tech-smartphones-analysis/chinese-smartphone-firms-jazz-up-products-seize-turf-in-home-market-from-apple-idUSKCN1R30CS

    While Apple may sell the majority of phones over $600 it seems clear that that band is being eaten into by competitors. That is the real story here.

    It is also clear why Chinese users have chosen more non iPhone ultra premium phones than ever: Those phones are simply considered to be better.

    Since 2017, and in spite of increasing prices, every single Huawei flagship model has broken sales records with regards to its predecessor. The P30 Pro isn't even two weeks old and pre-orders are already smashing those of the P20 Pro.

    And while Ms Meng may have an iPhone (an old one at that) she also has a 2,000€ Huawei Mate RS. Which do you think is her day to day phone?

    As for executives, all recent appearances have seen them using Mate X models.

    Yes, I wonder if Ms Meng is using the shiny Android or the iPhone that works with her iPad and the MacBook she carries on her person everywhere, including her international flights. That's really tough to figure out. 

    And breaking sales records isn't hard when you have no history of selling any significant number of premium phone sales. This Reuters "report" is pure corporate PR-BS fed directly from Huawei. 

    Last summer, Huawei said its P20 flagship series sales (including ~$240 models) were up by 81% over P10 (!) hitting... 6 million in a quarter. That's barely more than a couple years of Pixel, or on par with a Samsung launch. Note that Samsung's Galaxy S sales have crashed more than that.  

    Shame on you for trying to make us stupider rushing to forward some fact-free propaganda.  
    "Fact free propaganda"?

    Wrong on both counts.

    So, in spite of Reuters citing all the information given, you bin it as "PR BS direct from Huawei". On what grounds?

    What is more, they were citing, among others,  both Counterpoint and Canalys, both of whom are used as sources in numerous AI pieces during the year.

    And as for facts, I will correct you:

    https://www.phonearena.com/news/Huawei-P20-sales-numbers_id105758

    "UPDATE: Huawei has clarified to us that the number does not include sales of the Huawei P20 Lite. Instead, it solely represents sales of the two flagship models and can be considered an even more impressive achievement."

    This means that number does NOT include ~$240 phones. In fact, Huawei shipped 10,000,000 P20 flagships in five months:

    https://consumer.huawei.com/en/press/news/2018/Huawei-celebrates-10-million-huawei-p20-pro-and-p20-units-sold-globally/

    Far from being fact free, nothing I wrote was even remotely in that line.

    In spite of your attempts, what I wrote stands on its own two legs.

    Meng was carrying a Mate RS. The entire Huawei board has been seen carrying Mate X models.

    If Apple is seeing an iPhone slowdown in China, Huawei is very much one of the reasons. This is beyond doubt at this stage even if you (and basically only you) refuse to see it. The numbers are speaking for themselves and Huawei  still shows no signs of letting up (and there are indications of Honor once again getting aggressive on pricing in the mid range bands this year).





    I hope you are at least being paid to be a Huawei shill. 
    watto_cobra
  • Reply 25 of 35
    FatmanFatman Posts: 513member

    “Yujing Zhang, who said she was headed to the pool at Mar-a-Lago on Saturday, was carrying four phones, two Chinese passports, a laptop, hard drive and a USB stick loaded with malicious software. She didn't have a swimsuit.” Recent article ... Another Zhang ... LOL

    watto_cobra
  • Reply 26 of 35
    avon b7avon b7 Posts: 7,693member
    clarker99 said:
    avon b7 said:
    avon b7 said:
    "The state itself knows that Apple has very limited real competition with commodity Android  such as Huawei. China's affluent class uses iPhones, including Huawei's own executives, the company's brand ambassadors, and its public relations contractors-- even China's orchestrated propaganda campaigns against Apple were tweeted out by iPhone users. Apple's sales account for virtually all premium priced phones in the country. Globally, Apple sells the majority of all phones priced above $600"

    Reuters reported the opposite to what is implied here regarding premium competition in China:

    "Chinese smartphone firms jazz up products, seize turf in home market from Apple"


    https://www.reuters.com/article/us-china-tech-smartphones-analysis/chinese-smartphone-firms-jazz-up-products-seize-turf-in-home-market-from-apple-idUSKCN1R30CS

    While Apple may sell the majority of phones over $600 it seems clear that that band is being eaten into by competitors. That is the real story here.

    It is also clear why Chinese users have chosen more non iPhone ultra premium phones than ever: Those phones are simply considered to be better.

    Since 2017, and in spite of increasing prices, every single Huawei flagship model has broken sales records with regards to its predecessor. The P30 Pro isn't even two weeks old and pre-orders are already smashing those of the P20 Pro.

    And while Ms Meng may have an iPhone (an old one at that) she also has a 2,000€ Huawei Mate RS. Which do you think is her day to day phone?

    As for executives, all recent appearances have seen them using Mate X models.

    Yes, I wonder if Ms Meng is using the shiny Android or the iPhone that works with her iPad and the MacBook she carries on her person everywhere, including her international flights. That's really tough to figure out. 

    And breaking sales records isn't hard when you have no history of selling any significant number of premium phone sales. This Reuters "report" is pure corporate PR-BS fed directly from Huawei. 

    Last summer, Huawei said its P20 flagship series sales (including ~$240 models) were up by 81% over P10 (!) hitting... 6 million in a quarter. That's barely more than a couple years of Pixel, or on par with a Samsung launch. Note that Samsung's Galaxy S sales have crashed more than that.  

    Shame on you for trying to make us stupider rushing to forward some fact-free propaganda.  
    "Fact free propaganda"?

    Wrong on both counts.

    So, in spite of Reuters citing all the information given, you bin it as "PR BS direct from Huawei". On what grounds?

    What is more, they were citing, among others,  both Counterpoint and Canalys, both of whom are used as sources in numerous AI pieces during the year.

    And as for facts, I will correct you:

    https://www.phonearena.com/news/Huawei-P20-sales-numbers_id105758

    "UPDATE: Huawei has clarified to us that the number does not include sales of the Huawei P20 Lite. Instead, it solely represents sales of the two flagship models and can be considered an even more impressive achievement."

    This means that number does NOT include ~$240 phones. In fact, Huawei shipped 10,000,000 P20 flagships in five months:

    https://consumer.huawei.com/en/press/news/2018/Huawei-celebrates-10-million-huawei-p20-pro-and-p20-units-sold-globally/

    Far from being fact free, nothing I wrote was even remotely in that line.

    In spite of your attempts, what I wrote stands on its own two legs.

    Meng was carrying a Mate RS. The entire Huawei board has been seen carrying Mate X models.

    If Apple is seeing an iPhone slowdown in China, Huawei is very much one of the reasons. This is beyond doubt at this stage even if you (and basically only you) refuse to see it. The numbers are speaking for themselves and Huawei  still shows no signs of letting up (and there are indications of Honor once again getting aggressive on pricing in the mid range bands this year).





    I hope you are at least being paid to be a Huawei shill. 
    You have nothing to add about what I stated, then? Just labelling?

    Here is a relatively balanced overview of the Huawei story. Feel free to disagree with any or all of it but no one has to be a 'shill' to see why Huawei is having a negative effect on Apple in China. You should see that clearly, whatever your reading/perspective.

    https://foreignpolicy.com/2019/04/03/the-improbable-rise-of-huawei-5g-global-network-china/

    And if that wasn't already enough, now this:

    https://www.cnet.com/news/huawei-sets-new-goals-to-overtake-samsung-and-apple/

    Overoptimistic? I think so, but it is clearly a declaration of intent.
    edited April 2019 muthuk_vanalingam
  • Reply 27 of 35
    gatorguygatorguy Posts: 24,213member
    mudcat62 said:
    Good article, DED does his research! A little off topic, I went to The Verge website and the supposed tech writer Vlad wrote this screed about Iphone camera and Apple lack of innovation. I left a comment referencing Vlad and article and made some points on Apple innovation and was banned for supposedly bashing Vlad. What type of shady operation is the The Verge anyway?
    I suspect you might get banned here if your intent is simply bashing Apple and the editorials author. Depends on your tone and how valid your points are. Trolling for trolling's sake isn't tolerated on a lot of sites and many are getting more aggressive with moderation since comments are getting ever more personal. 
  • Reply 28 of 35
    gatorguy said:
    mudcat62 said:
    Good article, DED does his research! A little off topic, I went to The Verge website and the supposed tech writer Vlad wrote this screed about Iphone camera and Apple lack of innovation. I left a comment referencing Vlad and article and made some points on Apple innovation and was banned for supposedly bashing Vlad. What type of shady operation is the The Verge anyway?
    I suspect you might get banned here if your intent is simply bashing Apple and the editorials author. Depends on your tone and how valid your points are. Trolling for trolling's sake isn't tolerated on a lot of sites and many are getting more aggressive with moderation since comments are getting ever more personal. 
    I was calling out Vlad for his mis representation of Apple in a calm tone. There is something wrong when you get banned from a site when you disagree with their narrative, like most tech sites and Apple. DED has a correct take on it. He has been researching Apple for years.
    watto_cobra
  • Reply 29 of 35
    clarker99clarker99 Posts: 230member
    avon b7 said:
    clarker99 said:
    avon b7 said:
    avon b7 said:
    "The state itself knows that Apple has very limited real competition with commodity Android  such as Huawei. China's affluent class uses iPhones, including Huawei's own executives, the company's brand ambassadors, and its public relations contractors-- even China's orchestrated propaganda campaigns against Apple were tweeted out by iPhone users. Apple's sales account for virtually all premium priced phones in the country. Globally, Apple sells the majority of all phones priced above $600"

    Reuters reported the opposite to what is implied here regarding premium competition in China:

    "Chinese smartphone firms jazz up products, seize turf in home market from Apple"


    https://www.reuters.com/article/us-china-tech-smartphones-analysis/chinese-smartphone-firms-jazz-up-products-seize-turf-in-home-market-from-apple-idUSKCN1R30CS

    While Apple may sell the majority of phones over $600 it seems clear that that band is being eaten into by competitors. That is the real story here.

    It is also clear why Chinese users have chosen more non iPhone ultra premium phones than ever: Those phones are simply considered to be better.

    Since 2017, and in spite of increasing prices, every single Huawei flagship model has broken sales records with regards to its predecessor. The P30 Pro isn't even two weeks old and pre-orders are already smashing those of the P20 Pro.

    And while Ms Meng may have an iPhone (an old one at that) she also has a 2,000€ Huawei Mate RS. Which do you think is her day to day phone?

    As for executives, all recent appearances have seen them using Mate X models.

    Yes, I wonder if Ms Meng is using the shiny Android or the iPhone that works with her iPad and the MacBook she carries on her person everywhere, including her international flights. That's really tough to figure out. 

    And breaking sales records isn't hard when you have no history of selling any significant number of premium phone sales. This Reuters "report" is pure corporate PR-BS fed directly from Huawei. 

    Last summer, Huawei said its P20 flagship series sales (including ~$240 models) were up by 81% over P10 (!) hitting... 6 million in a quarter. That's barely more than a couple years of Pixel, or on par with a Samsung launch. Note that Samsung's Galaxy S sales have crashed more than that.  

    Shame on you for trying to make us stupider rushing to forward some fact-free propaganda.  
    "Fact free propaganda"?

    Wrong on both counts.

    So, in spite of Reuters citing all the information given, you bin it as "PR BS direct from Huawei". On what grounds?

    What is more, they were citing, among others,  both Counterpoint and Canalys, both of whom are used as sources in numerous AI pieces during the year.

    And as for facts, I will correct you:

    https://www.phonearena.com/news/Huawei-P20-sales-numbers_id105758

    "UPDATE: Huawei has clarified to us that the number does not include sales of the Huawei P20 Lite. Instead, it solely represents sales of the two flagship models and can be considered an even more impressive achievement."

    This means that number does NOT include ~$240 phones. In fact, Huawei shipped 10,000,000 P20 flagships in five months:

    https://consumer.huawei.com/en/press/news/2018/Huawei-celebrates-10-million-huawei-p20-pro-and-p20-units-sold-globally/

    Far from being fact free, nothing I wrote was even remotely in that line.

    In spite of your attempts, what I wrote stands on its own two legs.

    Meng was carrying a Mate RS. The entire Huawei board has been seen carrying Mate X models.

    If Apple is seeing an iPhone slowdown in China, Huawei is very much one of the reasons. This is beyond doubt at this stage even if you (and basically only you) refuse to see it. The numbers are speaking for themselves and Huawei  still shows no signs of letting up (and there are indications of Honor once again getting aggressive on pricing in the mid range bands this year).





    I hope you are at least being paid to be a Huawei shill. 
    You have nothing to add about what I stated, then? Just labelling?

    Here is a relatively balanced overview of the Huawei story. Feel free to disagree with any or all of it but no one has to be a 'shill' to see why Huawei is having a negative effect on Apple in China. You should see that clearly, whatever your reading/perspective.

    https://foreignpolicy.com/2019/04/03/the-improbable-rise-of-huawei-5g-global-network-china/

    And if that wasn't already enough, now this:

    https://www.cnet.com/news/huawei-sets-new-goals-to-overtake-samsung-and-apple/

    Overoptimistic? I think so, but it is clearly a declaration of intent.
    I just want to make sure your getting paid for your PR work. You sound like the Huawei rep that comes into my store to tell me everything is amazing. It all feels like Samsung circa the Galaxy S3. Posted sales numbers, over confidence, Apple ‘killers’, selling on specs. Blah, blah, blah. 
    watto_cobra
  • Reply 30 of 35
    k2kwk2kw Posts: 2,075member
    avon b7 said:
    "The state itself knows that Apple has very limited real competition with commodity Android  such as Huawei. China's affluent class uses iPhones, including Huawei's own executives, the company's brand ambassadors, and its public relations contractors-- even China's orchestrated propaganda campaigns against Apple were tweeted out by iPhone users. Apple's sales account for virtually all premium priced phones in the country. Globally, Apple sells the majority of all phones priced above $600"

    Reuters reported the opposite to what is implied here regarding premium competition in China:

    "Chinese smartphone firms jazz up products, seize turf in home market from Apple"


    https://www.reuters.com/article/us-china-tech-smartphones-analysis/chinese-smartphone-firms-jazz-up-products-seize-turf-in-home-market-from-apple-idUSKCN1R30CS

    While Apple may sell the majority of phones over $600 it seems clear that that band is being eaten into by competitors. That is the real story here.

    It is also clear why Chinese users have chosen more non iPhone ultra premium phones than ever: Those phones are simply considered to be better.

    Since 2017, and in spite of increasing prices, every single Huawei flagship model has broken sales records with regards to its predecessor. The P30 Pro isn't even two weeks old and pre-orders are already smashing those of the P20 Pro.

    And while Ms Meng may have an iPhone (an old one at that) she also has a 2,000€ Huawei Mate RS. Which do you think is her day to day phone?

    As for executives, all recent appearances have seen them using Mate X models.




    TheVerge is basically saying the MatePro 30 has phenomenal came camera results in lowlife.  And the iPhone isn’t even in the running.
  • Reply 31 of 35
    k2kwk2kw Posts: 2,075member
    mudcat62 said:
    Good article, DED does his research! A little off topic, I went to The Verge website and the supposed tech writer Vlad wrote this screed about Iphone camera and Apple lack of innovation. I left a comment referencing Vlad and article and made some points on Apple innovation and was banned for supposedly bashing Vlad. What type of shady operation is the The Verge anyway?
    Then it would be nice if AppleInsider did a comparison between the Mate 30Pro and Apple XS cameras.   Do they declare Apple the King or has-been.
  • Reply 32 of 35
    knowitall said:

    knowitall said:
    As I indicated in earlier posts the iPhones are about twice as expensive as they should be (including a healthy profit margin).
    It’s completely evident that Apple asks way to much for its products, just look at the billions of profit every month (that it burns away to even further insult its buyers).
    Got any facts to back up your personal theories? I didn't think so.  
    Actually, yes, see my previous posting about the value of an iPhone. Real profit is also a fact, unless Apple had its own info wrong.
    I didn’t see anything you posted about the value of an iPhone—is that in another thread? Could you please point me to the post you refer to, or re-post it please? 

    I’m also not sure what your comment on profit means.  Apple earned $20 billion in profit on sales of $84 billion. Yes, it’s real profit in fact, as you state, but what does it mean “unless Apple had its own info wrong”?
    watto_cobra
  • Reply 33 of 35
    avon b7 said:
    "The state itself knows that Apple has very limited real competition with commodity Android  such as Huawei. China's affluent class uses iPhones, including Huawei's own executives, the company's brand ambassadors, and its public relations contractors-- even China's orchestrated propaganda campaigns against Apple were tweeted out by iPhone users. Apple's sales account for virtually all premium priced phones in the country. Globally, Apple sells the majority of all phones priced above $600"

    Reuters reported the opposite to what is implied here regarding premium competition in China:

    "Chinese smartphone firms jazz up products, seize turf in home market from Apple"


    https://www.reuters.com/article/us-china-tech-smartphones-analysis/chinese-smartphone-firms-jazz-up-products-seize-turf-in-home-market-from-apple-idUSKCN1R30CS

    While Apple may sell the majority of phones over $600 it seems clear that that band is being eaten into by competitors. That is the real story here.

    It is also clear why Chinese users have chosen more non iPhone ultra premium phones than ever: Those phones are simply considered to be better.

    Since 2017, and in spite of increasing prices, every single Huawei flagship model has broken sales records with regards to its predecessor. The P30 Pro isn't even two weeks old and pre-orders are already smashing those of the P20 Pro.

    And while Ms Meng may have an iPhone (an old one at that) she also has a 2,000€ Huawei Mate RS. Which do you think is her day to day phone?

    As for executives, all recent appearances have seen them using Mate X models.



    Shame on you for trying to make us stupider rushing to forward some fact-free propaganda.  
    Hey, speak for yourself! He's on my ignore list so I don't get stupider reading his crap!!
    watto_cobra
  • Reply 34 of 35
    wandersowanderso Posts: 116member
    wanderso said:
    While the focus of this article is specific to iPhone pricing in China, I believe that Apple needs to revive an entry level iPhone in their lineup that isn’t simply continuing to produce last year’s model at a lower price.   Much of the internals can still be from the old phone, but having something that is new to this less expensive phone brings appeal to budget conscious buyers.  I realize that the XR could be said to fulfill that, but it still isn’t quite at the right price point for what I am meaning.  

    Why do this?  Apple is attempting a further shift towards services.  There is a hardware $$ barrier of entry to these services set by the prices for Apple premium products.  By having “budget friendly” options, the potential base for these services greatly expands.  One may argue that budget conscious buyers may be less apt to buy these services, but people on tighter budgets seem to always find a means to pay for entertainment options (for example) at the level that they can afford.  If Apple services were strong enough from a product sales mix perspective, they could sell the phones at much lower margins and make up the difference (and more!) through this strategy.   Apple’s huge cash horde allows them to consider to enter a market with deeper investments than virtually all of their competitors. Sometimes these investments come in the form of less margin.  
    If Apple does not do this, their services uptick will not reach the dominance that they could. 
    How cheap does hardware have to get to reach people who will actually pay for these services? People buying $400 phones aren't paying for top tier services. They are stealing movies.

    Samsung couldn't sell Milk music to its $200 ASP audience of smartphone buyers. Why do you suppose? 

    Google can't sell half the apps to its Play audience despite having twice the volume of people.

    Subsidizing hardware sometimes makes sense: Xbox and Playstation were always sold at or below cost, but they made it up in licensing $80 games. How will Apple break even on phones and make enough to replace that with services? It won't. Much smarter to be an Apple than to be a Samsung, which is pretty much exactly what you're saying Apple "needs" to be to gain critical mass. Does not appear to be true.  
    Stating holistically that people paying $400 for a phone are thieves is a huge, and frankly, offensive leap in your argument.  The other notes you share bring merit.

    Auto manufacturers sell lower price, entry level vehicles to get people into the market and connect to the brand.  They don’t offer 3 year old models packaged as “new” like Apple does with the iPhone 7 for $449.

    Many people with lesser means pay for premium, but still affordable in small chunks services every day.  Starbucks is an example when coffee was otherwise 50 cents.

    Many other people also buy things based on value, even if they have the financial means to pay top dollar for an iPhone XS Plus.  

    Most printers are also sold at a loss. The manufacturers make it up on the consumables.   I’m not advocating for Apple to do that.  
    muthuk_vanalingam
  • Reply 35 of 35
    k2kwk2kw Posts: 2,075member

    Latko said:
    So slashing prices a certain percentage wouldn’t enhance sales, but bad exchange rates had impact. It’s a strange, Cookette world...
    Any difference in price has some effect. 

    4-6% is not a "slashing."

    China's VAT reduction was expressly intended to boost economic activity, as noted in the article.

    Overall improvements in China's economic situation will have a positive affect on delayed iPhone sales. 

    Currency exchange affects the price users see, and also affects the profits Apple reports in USD. 
    So what’s the point of this editorial.

    That Apple hasn’t cut prices really and sales will stay the same or go up or that sales will go down due to still being over priced.

    Always easier to explain past than predict future.  will Apple be up or down this past quarter.
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