iPhone 5C Might Not Be Cheap Enough in China
iPhone 5C has tried to become the “ affordable” mart phone. “C” stands
for cheap, at the same time, fans are saying the it designed for the
Chinese market. Apple has attempted to gain sales in China by offering a
cheaper alternative to the middle-class and low-class smart phone
users, however, it may appearthis new offering may not be as cheap as
required. The 16GB iPhone 5C is selling at price of 4,488 RMB ($733),
however, experts predicted the new iPhone should be around 3,000 RMB.
Carrier thinks that it will fail to reach the goal of majority of
Chinese consumers according to The Wall Street Journal based on income
distribution data from research firm CEIC Data.
assume that Chinese urban family is more likely willing to buy a smart
phone with at most half of the total monthly income. If the carrier
would offer the new phone at price of 3,000 RMB, the potential 260
million Chinese residents will more willing to buy it. It may very well
double the consumers for Apple.
However, it will still be
too pricey for the 62% of the Chinese urban residents. As anexample,
around 70% of population in Yangquan, Shanxi is still looking for a
phone priced at 1,000 to 2,000 RMB, or lower. Many people would prefer
to get the national brand such as Oppo Electronics Corp. that runs at
1,000 RMB. Moreover, this phone has the same hardware as Apple. For
example, Mr. Jiang would love to get an iPhone, but Oppo would offer
their customers affordable price between 500 to 1,000 RMB. Others in
town said that they saw the benefit of buying domestic brands. Wang Hua
who who works in an insurance company, said he will support Huawei
because he heard Obama is
trying to block it from U.S. Market. In
Shijiazhuang, most sellers will try to up sell 5C from cheaper domestic
brands. The new phone may lead a short-term spike but will change the
reputation of Apple luxury brand in long-term.
Ma Tao who
owes a electronic shop said, people will more likely choose domestic
phone over the new iPhone since the hardware is the same but cheaper.