Welcome to the CrackBerry Forums Create Your Account or Ask a Question Answers in 5 minutes - no registration required!
Results 1 to 12 of 12
  1. dbollman423's Avatar
    CrackBerry Addict

    Posts
    569 Posts
    Global Posts
    570 Global Posts
    Thread AuthorThread Author   #1  

    Default iphone 5 launch fails to excite china

    iPhone 5 launch fails to excite China

    the Guardian

    This is being posted because it could be a great opportunity for BlackBerry since China's 290 million users of smartphones is expected to double in the next year.

    Shares fell 3.9% and analysts cut shipment forecasts after the launch of Apple's latest smartphone received a frosty reception

    Touts offer the iPhone 5 outside an Apple store on the first day of the smartphone's release in Beijing, China Photograph: How Hwee Young/EPA
    Charles Arthur

    Apple shares fell 3.9% in early trading on Friday after the launch of its iPhone 5 received a frosty reception in China, and two analysts cut shipment forecasts.

    It was a dramatic contrast to the scenes at the iPhone 4S launch in January when an angry crowd pelted the store in Beijing with eggs and fights broke out between would-be touts aiming to resell new phones.

    On Friday there was one person waiting at Apple's store in Shanghai's financial district before it opened. But the lack of queues may have been down to the online lottery scheme introduced by Apple to prevent a repeat of January's chaos. It used the same method earlier this month for the launch of its iPad mini, and enforced a two-per-person limit.

    Although the company has 300,000 pre-orders for the phone from China Unicom, one of the three big mobile providers, and will also sell it through mobile company China Telecom, it has still not sealed a deal with China Mobile, the biggest player with 703 million users of whom 79m are 3G (ie smartphone) users. Despite years of talks, the two sides have disagreed on revenue splits and business models.

    That means Apple is unable to increase its shipments there as fast as the market for smartphones is growing. There are already 290 million smartphone users and that is forecast to double in the next 12 months.

    Nokia's shares rose earlier this month after it tied up a deal to sell its Lumia smartphones through China Mobile.

    Even so, China Mobile announced in March that an estimated 15 million people use iPhones on its network, despite their being incompatible with its data services.

    More broadly, But Apple and Nokia are struggling in the face of competition from devices powered by versions of Google's Android software: those make up roughly 90% of the smartphones sold in China, although many connect to Chinese services rather than Google's.

    "In absolute terms, this (iPhone 5) launch will certainly result in strong sales for Apple in China. However, in relative terms, I don't believe it will move the needle enough in market share," Shiv Putcha, a Mumbai-based analyst at Ovum, a global technology consultant, told the Reuters news agency.

    Peter Misek of Jefferies said he was lowering his iPhone shipment estimates for the first quarter of 2013 by 5m to 48m, on the basis that the company was cutting orders to suppliers. He also cut his estimates for the company's gross margins by 2 percentage points, to 40%. He said it was unclear how much the snowy weather and requirement to pre-order were factors in the small queues.

    That seems to have helped push down Apple shares, which have lost a quarter of their value since hitting an all-time high of $705.07 on 21 September.

    Steven Milunovich, an analyst at UBS Research, told clients in a research note that he didn't expect the iPhone 5 to do as well in China as the iPhone 4S. The brokerage cuts its price target for Apple's stock to $700, substantially down from $780, on the expectation of lower iPhone and iPad shipments in the first quarter of 2013.

    Sent from my BlackBerry 9930 using Tapatalk
  2. Roo Zilla's Avatar
    CrackBerry Genius

    Posts
    2,339 Posts
    Global Posts
    2,567 Global Posts
    #2  

    Default

    Blackberry has been available in China for much longer than iPhone. They've been on China Mobile for at least 5 years. BIS has been available on China Mobile for over 2 years. For 2012, they're expected to sell about 1 million handsets. Blackberries are just not very popular. The data plans might have something to do with it. They start at 98RMB (about $16) for 30MB on BIS, BES costs twice that.
  3. raino's Avatar
    CrackBerry Genius of Geniuses

    Posts
    5,887 Posts
    Global Posts
    6,062 Global Posts
    #3  

    Default

    How are they launching in China? Aren't they still behind demand, or have they finally caught up?
    Models and Supported Frequencies: Z10, Q10, Q5, Z30

    Want to find out which radio band your BB10 phone is currently on? UMTS, LTE (careful with escreens!)
  4. badiyee's Avatar
    CrackBerry Master

    Posts
    1,227 Posts
    Global Posts
    1,234 Global Posts
    PIN
    24E867DB
    #4  

    Default iphone 5 launch fails to excite china

    Apple's own social engineering failed them in China. It has not much of correlation of BlackBerry making an inroad success.

    Chinese customers are probably one of the most fickle ever. I can point to Xiaomi, and the avalanche of the iPhone rip-offs. Note, they are aware its Android beneath it, but Chinese market doesn't behave much like international market does.

    Sent from my BlackBerry 9800 using Tapatalk
  5. CrackedBarry's Avatar
    CrackBerry Master

    Posts
    1,242 Posts
    Global Posts
    1,316 Global Posts
    #5  

    Default

    Yes, I'm sure they're crying bitter tears in Cupertino. After all they only managed to sell over 2 million in a single weekend, beating all previous sale records. Oh woe!
  6. Roo Zilla's Avatar
    CrackBerry Genius

    Posts
    2,339 Posts
    Global Posts
    2,567 Global Posts
    #6  

    Default

    It seems most of these articles are neglecting to mention the fact that the carrier subsidies for iPhones have dropped dramatically in China. Chinese phone plans are really convoluted, and the subsidies are different depending on the plans you get. The most expensive plan (about $130 per month) will get you the iPhone 5 for free with a one year contract. Compared to the iPhone 4S launch, the subsidies have dropped by about 1500RMB (about $230) for most plans, basically making the iPhone 5 significantly more expensive than its predecessor. Yet.... they still sold 2 million of them in a few days.
  7. Roo Zilla's Avatar
    CrackBerry Genius

    Posts
    2,339 Posts
    Global Posts
    2,567 Global Posts
    #7  

    Default

    Quote Originally Posted by badiyee View Post
    Apple's own social engineering failed them in China. It has not much of correlation of BlackBerry making an inroad success.

    Chinese customers are probably one of the most fickle ever. I can point to Xiaomi, and the avalanche of the iPhone rip-offs. Note, they are aware its Android beneath it, but Chinese market doesn't behave much like international market does.
    Xiaomi sold about 3 million Xiaomi 1 phones during 12 months, and they are considered the company to watch. Apple sold 2 million in 3 days. I strongly doubt Xiaomi phones have much impact on iPhone sales. Xiaomi tends to be popular with a younger demographic than iPhone. The iPhone knockoffs have 0 impact on iPhone sales. The customers for the real thing (paying about 5400RMB) are distinctly different than the ones buying knockoffs for 600RMB and less.

    There's really no failure from Apple from marketing aspect. Apple is still the top desired and recognized brand. Every promotional contest I've seen at places like Carrefour, features iPads or iPhones. Every independent phone shop has an Apple sign on it, and they're on every corner, even when they don't sell iPhones, which is funny as ****. Where the problem lies really is price. iPhones are the most most expensive phones on the market excluding stuff like Vertu. It's suspected that Apple could dramatically increase sales, if they were willing to create a sub 2000RMB phone. That's not happening anytime soon though. As they famously said about netbooks... they don't know how to make a $200 phone.
  8. badiyee's Avatar
    CrackBerry Master

    Posts
    1,227 Posts
    Global Posts
    1,234 Global Posts
    PIN
    24E867DB
    #8  

    Default iphone 5 launch fails to excite china

    Quote Originally Posted by Roo Zilla View Post
    Xiaomi sold about 3 million Xiaomi 1 phones during 12 months, and they are considered the company to watch. Apple sold 2 million in 3 days. I strongly doubt Xiaomi phones have much impact on iPhone sales. Xiaomi tends to be popular with a younger demographic than iPhone. The iPhone knockoffs have 0 impact on iPhone sales. The customers for the real thing (paying about 5400RMB) are distinctly different than the ones buying knockoffs for 600RMB and less.

    There's really no failure from Apple from marketing aspect. Apple is still the top desired and recognized brand. Every promotional contest I've seen at places like Carrefour, features iPads or iPhones. Every independent phone shop has an Apple sign on it, and they're on every corner, even when they don't sell iPhones, which is funny as ****. Where the problem lies really is price. iPhones are the most most expensive phones on the market excluding stuff like Vertu. It's suspected that Apple could dramatically increase sales, if they were willing to create a sub 2000RMB phone. That's not happening anytime soon though. As they famously said about netbooks... they don't know how to make a $200 phone.
    I do not disagree that Apple's still the most desirable phone. However, like I said, chinese consumer mentality is very different from the rest of the world, much less American consumerism patterns. (Or north America continent, that is?)

    You'll be surprised in the early days of iPhone, people are willing to buy and sell fake iPhones, to the point that they become very hard to differenciate between the authentic ones and the heavily skinned ones (in the recent reiteration).

    But to the point why the so called "lukewarm / frozen" response, I think Apple / investors / analysts were hoping for a complete sell out on first day / week. Unfortunately for Apple it hasn't, and the burden of hype did dented their stocks on that day, I think 3%?

    That's why I pointed at the competition, Xiaomi, and all the other Android phones. It wasn't like iphone 3Gs / iphone4 / iPhone4S era when it was a "sell-out", surpassing whatever expectations (high or low at that time).

    And in China, the way I perceive it, as my family members visited there very recently, seems to behave on a very different consumer plane.

    Sent from my BlackBerry 9800 using Tapatalk
  9. Roo Zilla's Avatar
    CrackBerry Genius

    Posts
    2,339 Posts
    Global Posts
    2,567 Global Posts
    #9  

    Default

    Quote Originally Posted by badiyee View Post
    I do not disagree that Apple's still the most desirable phone. However, like I said, chinese consumer mentality is very different from the rest of the world, much less American consumerism patterns. (Or north America continent, that is?)

    You'll be surprised in the early days of iPhone, people are willing to buy and sell fake iPhones, to the point that they become very hard to differenciate between the authentic ones and the heavily skinned ones (in the recent reiteration).

    But to the point why the so called "lukewarm / frozen" response, I think Apple / investors / analysts were hoping for a complete sell out on first day / week. Unfortunately for Apple it hasn't, and the burden of hype did dented their stocks on that day, I think 3%?

    That's why I pointed at the competition, Xiaomi, and all the other Android phones. It wasn't like iphone 3Gs / iphone4 / iPhone4S era when it was a "sell-out", surpassing whatever expectations (high or low at that time).

    And in China, the way I perceive it, as my family members visited there very recently, seems to behave on a very different consumer plane.

    Sent from my BlackBerry 9800 using Tapatalk
    I've lived part of the year in China for a decade. I know what goes on here, and I saw the very first iPhone knockoffs in the market about 5 years ago. The knockoffs have no effect on sales of the real thing. The fakes all sell for 400-1000RMB, which is a far cry from 5400RMB. People looking to buy a real one are not going to turn around and buy a fake. The fakes look like an iPhone, but they don't perform like one. For example, instead of glass, they'll have plastic on the fake iPhone 4S.

    Apple sold out earlier releases of iPhones because they had very little quantity. For example, for the 4S release, they about 300,000 units. The mob scenes at the stores for the 4S were dominated by scalpers. The new reservation system prevents scalping, thus no mobs.

    That said, there is no doubt that the Samsung Galaxy S3 has had a significant impact on the iPhone mystique in China. Until the S3, most people in China perceived Android as "lesser" than iOS. Even now, there is a significant percentage who prefer the S3 over iPhone 5 because of its perceived shortcomings.

    Chinese are big time consumers. The rich will buy anything and everything. Normal people spending a month's salary to buy a smartphone is common. Young girls carrying Louis Vuitton and Prada in the ritzy areas is a common sight in places like Shanghai and Shenzhen.
  10. ritesh's Avatar
    CrackBerry Addict

    Posts
    539 Posts
    Global Posts
    610 Global Posts
    PIN
    DROP SILENCE
    #10  

    Default

    Even so, China Mobile announced in March that an estimated 15 million people use iPhones on its network, despite their being incompatible with its data services.
    This, I don't understand. The 15 million people use an Iphone just to make/receive calls and text messages?
    BB Users from India, check out www.bbindia.net
  11. Roo Zilla's Avatar
    CrackBerry Genius

    Posts
    2,339 Posts
    Global Posts
    2,567 Global Posts
    #11  

    Default

    Quote Originally Posted by ritesh View Post
    This, I don't understand. The 15 million people use an Iphone just to make/receive calls and text messages?
    No. They can't use 3G, but they can use 2G data.
  12. badiyee's Avatar
    CrackBerry Master

    Posts
    1,227 Posts
    Global Posts
    1,234 Global Posts
    PIN
    24E867DB
    #12  

    Default iphone 5 launch fails to excite china

    Quote Originally Posted by Roo Zilla View Post
    I've lived part of the year in China for a decade. I know what goes on here, and I saw the very first iPhone knockoffs in the market about 5 years ago. The knockoffs have no effect on sales of the real thing. The fakes all sell for 400-1000RMB, which is a far cry from 5400RMB. People looking to buy a real one are not going to turn around and buy a fake. The fakes look like an iPhone, but they don't perform like one. For example, instead of glass, they'll have plastic on the fake iPhone 4S.

    Apple sold out earlier releases of iPhones because they had very little quantity. For example, for the 4S release, they about 300,000 units. The mob scenes at the stores for the 4S were dominated by scalpers. The new reservation system prevents scalping, thus no mobs.

    That said, there is no doubt that the Samsung Galaxy S3 has had a significant impact on the iPhone mystique in China. Until the S3, most people in China perceived Android as "lesser" than iOS. Even now, there is a significant percentage who prefer the S3 over iPhone 5 because of its perceived shortcomings.

    Chinese are big time consumers. The rich will buy anything and everything. Normal people spending a month's salary to buy a smartphone is common. Young girls carrying Louis Vuitton and Prada in the ritzy areas is a common sight in places like Shanghai and Shenzhen.
    I am not going to point luis vuitton and prada, but essentially my point is that compared from the ip3-4s range launch windows, as compared to now there weren't much high end tier phones to compete with. Now they have some home grown ones. Counterfeit market thrives there as well. But I'm not going to mince my words. I still look at the reception as "lower than it should be".

    That said I will not deny their success. A phone sold means high margins for them. But many were expecting a stellar level of "omgimustbeamongthosetogetonenow!" kind of lines and lines.


    Sent from my BlackBerry 9800 using Tapatalk

Similar Threads

  1. Viewpoint: Apple's iPhone launches no longer excite
    By codiak in forum Apple iPhone/iPad
    Replies: 45
    Last Post: 09-15-2012, 06:47 AM
  2. Apple Servers Fail To Handle iPhone Frenzy
    By RConcheiro in forum Other Platforms
    Replies: 7
    Last Post: 07-11-2008, 05:40 PM
  3. Voice Dialing fails to initialize and hangs 8830
    By N-B-N in forum BlackBerry 8830 WE
    Replies: 5
    Last Post: 02-19-2008, 09:45 AM
  4. Can't login to Excite e-mail
    By jbravo in forum BlackBerry Pearl 81xx
    Replies: 0
    Last Post: 11-28-2007, 06:54 PM
  5. Setting up email account - Three worked, one fails to set up
    By swimman in forum General BlackBerry Discussion
    Replies: 3
    Last Post: 11-23-2007, 08:46 PM

Posting Permissions