Monday, September 16, 2013

iPhone 5C Might Not Be Cheap Enough in China

iPhone 5C Might Not Be Cheap Enough in China 

The 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.

Analysts 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.

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