Tags: apple | iphone | china | big screen

Apple Looks for Big Screen Boost as iPhone 6 Plus Hits China

Friday, 17 October 2014 07:47 AM EDT

Apple Inc.’s large screen iPhone 6 Plus is finally available in the world’s biggest smartphone market and Chinese consumers don’t have to resort to smugglers.

The new device went on sale today in China, almost a month after their global debut. The 4.7-inch iPhone 6 starts at 5,288 yuan ($863) through Apple’s China outlets which compares with $649 for the same model without a contract on its U.S. website.

Strong demand, especially for the 5.5-inch iPhone 6 Plus, saw Chinese consumers pay black market vendors almost double the Hong Kong price for phones brought illegally across the border after its global release. While the debut comes as China’s wireless carriers cut subsidies on devices, the new Apple phones will outsell previous models, said Bryan Wang, China country manager for Forrester Research.

“The large screen iPhones are going to sell better in China for the first weekend than last year’s iPhone 5s, but may not be multiple folds,” Wang said.

As many as 20 million consumers registered to buy the new devices through various channels, according to a report on Tencent Holdings Ltd.’s Tech.qq.com website. Usually about 10 percent to 15 percent of registrations result in sales, implying sales between 2 million and 3 million units, Wang said.

About 150 people lined up at Apple’s store in China Central Place in eastern Beijing today to pick up devices they pre-ordered as staff in blue shirts clapped and chanted “iPhone 6” in Mandarin.

Reduced Subsidies

Among the first was 27-year-old doctoral candidate An Le, who has used Apple since getting an iPhone 4s and bought the 6 Plus. He had been waiting for Apple to release a larger screen phone to rival devices from Samsung Electronics Co.

“Samsung has already had large screens for years, and I’ve been waiting for Apple to catch up,” An said. “Now that it’s finally here I really want to give it a try.”

Apple and other high-end smartphone makers are facing changes in how China’s wireless carriers sell devices as operators move to lower the amount they spend on subsidizing new devices. China Mobile Ltd., the world’s largest carrier, is taking steps toward eliminating $2 billion in smartphone subsidies.

At the carrier’s store in Beijing’s Wangfujing shopping street, staff explain there are no unique packaging or pricing plans for the iPhone 6 and no subsidies for any smartphones on display.

Instead, customers are offered discounts on calling plans depending on their monthly spending. On the most expensive plan, the total discount adds up to 3,264 yuan over two years, or about 62 percent of the cheapest iPhone 6.

Following Samsung

Apple is also rolling out the new iPhones in India and Monaco and the phones will reach an additional 36 countries this month. By the end of October, the devices will be available in 69 countries and on pace to reach 115 countries by year’s end, Apple said in a statement.

Still, none of those markets can compare to China, where Apple got $5.9 billion of sales in the three months ended June 28, or about 16 percent of the company’s total revenue. The China region for which the company discloses sales includes Taiwan and Hong Kong.

Fever for the largest devices had buyers in Beijing last month paying 12,000 yuan for the 128 gigabyte iPhone 6 Plus, or 87 percent more than the Hong Kong list price. That model will cost 7,788 yuan at Apple from Friday, according to its China website.

Online Videos

“The outlook for the iPhone 6 and 6 Plus seems positive in China,” said Tay Xiaohan, a Singapore-based analyst with International Data Corp. “Apple has always been a very popular brand with the Chinese, and with the demand for larger screen sized phones growing in China, we are not surprised to see the high number of pre-orders for iPhones in the market.”

Liu Dongmin, an 18-year-old student, said he wanted the iPhone 6 Plus to upgrade from the 4-inch screen of his iPhone 5s so he can watch more online videos.

“Bigger is cooler because I watch so many videos,” Liu said. “It doesn’t make too much sense to upgrade from the iPhone 5s to the regular 6 because there is not that much change.”

Even with healthy sales, the impact on Apple’s market share may be minimal given the strong growth that local Chinese vendors like Lenovo Group Ltd. and Xiaomi Corp. have in the low- to mid-range segment of the market, Tay said.

Apple had 6 percent of China’s smartphone market in the second quarter, ranking sixth in the country, behind market leaders Lenovo and Xiaomi, according to IDC.

Apple held an event at its headquarters in Cupertino, California, where it unveiled new iPads and Macintosh computers. Chief Executive Officer Tim Cook is aiming to reinvigorate the iPad line after sales of the tablets, Apple’s second-biggest product by revenue, have declined for two straight quarters.

© Copyright 2024 Bloomberg News. All rights reserved.


Companies
Apple Inc.'s large screen iPhone 6 Plus is finally available in the world's biggest smartphone market and Chinese consumers don't have to resort to smugglers.
apple, iphone, china, big screen
816
2014-47-17
Friday, 17 October 2014 07:47 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved