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Old Sep 11, 2013, 08:14 AM   #1
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Chinese Officials License iPhone to Run on China Mobile's Wireless Standard




A Chinese regulatory body has given Apple the final license necessary for the iPhone to run on China Mobile's wireless standard, reports The Wall Street Journal. The approval comes after Apple's announcement yesterday of the new iPhone 5s and lower-cost iPhone 5c, both of which support the TD-LTE standard used by China Mobile, the world's biggest carrier with over 700 million users.

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According to the website of China's Telecom Equipment Certification Center Wednesday, Apple received what's called a "network access license" for a handset resembling the iPhone that runs on the mobile standards used by China Mobile for third and fourth generation cellular services. Other licenses were given to Apple for handsets running the technology used by both China Unicom (Hong Kong) Ltd. and China Telecom Corp.
A deal between China Mobile and Apple has reportedly long been in the works, with China Mobile Chairman Xi Guohua and Apple CEO Tim Cook meeting in July to discuss "matters of cooperation", with the former indicating that he felt optimistic about a potential deal leading up to the announcement of the new phones. Last week, The Wall Street Journal also reported that Apple was preparing to ship the new lower-cost iPhone 5c to the carrier, suggesting a deal between the two companies had indeed been reached.

The new iPhone 5s and the lower-cost iPhone 5c will be available in stores in China, the US, Australia, Canada, France, Germany, Japan, Singapore, and the UK starting on September 20.

Article Link: Chinese Officials License iPhone to Run on China Mobile's Wireless Standard
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Old Sep 11, 2013, 08:17 AM   #2
absurdamerica
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How can you guys even be serious? The 5C isn't priced any differently than the previous options. It may cost less to build, but that's about it.
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Old Sep 11, 2013, 08:19 AM   #3
Mac-Mariachi
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Even at that price, I'm sure the 5c and 5s will sell very well in China.
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Old Sep 11, 2013, 08:22 AM   #4
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At $739 (16GB) and $869 (32GB) for the 5C here in Australia, I fail to see how it's the cheaper alternative. Pretty sure I paid $950 for the 4S back in the day.. 64GB 5S $1,129! You can buy macbook airs (basic) for $799 at the moment locally.. I just don't see how the price is justified..
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Old Sep 11, 2013, 08:24 AM   #5
ValSalva
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Originally Posted by absurdamerica View Post
How can you guys even be serious? The 5C isn't priced any differently than the previous options. It may cost less to build, but that's about it.
The 5C cost the same as the 4S did last month. Yet it was my understanding the 4S wasn't selling well enough and Apple needed a lower priced phone.

So Apple introduces a 'new' model iPhone with last years insides at the previous 4S price but in bright colors. It will be interesting to see if this gamble pays off.
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Old Sep 11, 2013, 08:25 AM   #6
Shaun, UK
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The entry level 16GB iPhone 5C costs the equivalent of US $733 in China. It will be interesting to see how many they sell at that price given that Apple's market share in China has halved in the past year due to stiff competition from Xiaomi and Lenovo.

Last edited by Shaun, UK; Sep 11, 2013 at 08:31 AM.
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Old Sep 11, 2013, 08:28 AM   #7
Stef4n
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Originally Posted by Mac-Mariachi View Post
Even at that price, I'm sure the 5c and 5s will sell very well in China.
Well with an avg. income of 500$ in China, I am sure it won't. Who is developing a Chinese App for 10% of the smartphone users if 85% use Android?

But I am also sure why it's priced so high: it is because of China Mobile and their strict negotiations. Only in China this is possible. In any other country they couldn't be so strict, but of course in China the state controlls the competition.
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Old Sep 11, 2013, 08:29 AM   #8
omenatarhuri
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Is it available on China mobile?
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Old Sep 11, 2013, 08:29 AM   #9
MacFather
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iPhone 5C - The Beginning of Another John Sculley era
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Old Sep 11, 2013, 08:31 AM   #10
HansGoneInsane
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Apple pokers too high with iPhone 5c

I think that the prices for an iPhone 5C that is starting at €599 in Germany are far too high. The colors look great but one should not forget that you buy a 2012 smartphone for a price of a high end 2013 smartphone. €499 would have been the max price one could justify. The iPhone 5S however is in range of what one can expect from an update within an existing product line. Since I am still on an iPhone 4, I think about getting a 5S.
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Old Sep 11, 2013, 08:37 AM   #11
Shaun, UK
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iPhone 5C - The Beginning of Another John Sculley era
Hopefully they've learned a few lessons from that period. Look Jony Ive is still there, most of the people who made the company what it is today with Steve are still there. What they need is a new visionary leader and IMHO Tim Cook is not that person. Look what happened to Microsoft after Ballmer took over from Gates and it took them 10 years to realise it.
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Old Sep 11, 2013, 08:38 AM   #12
kckl
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5C too expensive?

I think it's fair to say 5C price is higher than we expected. However, its only true when you price it as a commodity. However, Apple is already a name brand in China, (I believe 5C is purely targeted for China). People over there wouldn't mind to pay extra $$ to get an Apple products. It's cheaper than 5S and it's an Apple product, people will definitely buy it. It's a psychological game. If it's set at $199 without contract, people would think this Apple is depreciated. It's weird but it's total different mineset than the West. To them buying a name brand product with big price tag means they can afford luxury goods, it means a lot to them. Apple is so smart to set the price right to capture those 700 million subscribers.
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Old Sep 11, 2013, 08:41 AM   #13
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I don't understand all these claims of iPhone 5C being tagged as a "low-cost" device. All I saw were two expensive new iPhones being released. Nowhere on their website does Apple describe the 5C as low-cost, it's 469/$549. We all know you need a decent salary or very gracious parents to afford it.

But Apple could have really got their hands dirty if they had introduced it at $49/month for iPhone 5C and just discontinued the 4S altogether.
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Old Sep 11, 2013, 08:43 AM   #14
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I think people are blinded by the new phone. Yes Apple basically released a high margin plastic version of what should've been the same metallic iphone 5 in all previous years. But, it also signals, to me anyway, that apple doesn't think the "free" segment is that interesting. Think about this for a second, what's the point of releasing a new fashionable phone at any price point? In economic, demand and supply has to be there, or in this case, demand is very important.

Apple must have data from past years showing them that the iphone 4S last year sold much better than the iphone 4 pricing segment. That's their sweet spot in terms of both margins and demand and so by releasing a brand new fashionable version, they can attract even more shoppers and raise their margins at the same time

I mean i have no proof of this, but you'd imagine a big company like apple isn't just going to release an iphone for a cheaper price because analysts told them to.

And to people who said they don't think steve jobs would've released a colorful iphone, LOL. This was literally what he did with the ipod.
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Old Sep 11, 2013, 08:50 AM   #15
Shaun, UK
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Originally Posted by kckl View Post
I believe 5C is purely targeted for China
Why do people keep saying that? It's complete nonsense. It's targeted at anyone and everyone who simply want a cheaper iPhone. It's going to be on sale worldwide.
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Old Sep 11, 2013, 08:53 AM   #16
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Originally Posted by kckl View Post
I believe 5C is purely targeted for China).
iPhone 5C IS iPhone 5 China!
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Old Sep 11, 2013, 08:55 AM   #17
hkenneth
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Originally Posted by Stef4n View Post
Well with an avg. income of 500$ in China, I am sure it won't. Who is developing a Chinese App for 10% of the smartphone users if 85% use Android?

But I am also sure why it's priced so high: it is because of China Mobile and their strict negotiations. Only in China this is possible. In any other country they couldn't be so strict, but of course in China the state controlls the competition.
We are not talking about average income. We are here talking about the 5% population who have $10k income, which is about 65 million people
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Old Sep 11, 2013, 09:12 AM   #18
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We are not talking about average income. We are here talking about the 5% population who have $10k income, which is about 65 million people
and that 5% would go with the 5S and not the 5C (which looks like it's aimed for pre-teens, thus making the release of the 5C pointless in China.
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Old Sep 11, 2013, 09:24 AM   #19
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The iPhone 5C is a "low cost" phone, it's just not a "low price" phone.

Here's the dynamic... the feature differences from year to year are beoming less dramatic. So less US customers are opting for the $200 premium phone and more are opting for $100 yr old phone or the free 2-yr old phone. Here's the dirty little secret. The manufacturing cost of all of Apple's phones (up to now) are about the same. It costs Apple just as much to make a 4S as it does a 5S. So Apple's margins are getting whacked by the shift to the older phones. Apple's response is to decontent the older phones to improve those margins. Give the customer less for the same price.

So the 5C is all about improving margins. What the 5C is most resoundingly NOT, is a low price phone targetted towards emerging markets. Apple continues to neglect that segment. Cook has had a clear strategic decision to make, margins or market share, and he's made it.
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Old Sep 11, 2013, 09:30 AM   #20
scbn
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A deal with China Mobile has not been announced, yet, despite all the hype about it. The market is disappointed.
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Old Sep 11, 2013, 09:32 AM   #21
FrozenDarkness
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Originally Posted by jmerchlinsky View Post
The iPhone 5C is a "low cost" phone, it's just not a "low price" phone.

Here's the dynamic... the feature differences from year to year are beoming less dramatic. So less US customers are opting for the $200 premium phone and more are opting for $100 yr old phone or the free 2-yr old phone. Here's the dirty little secret. The manufacturing cost of all of Apple's phones (up to now) are about the same. It costs Apple just as much to make a 4S as it does a 5S. So Apple's margins are getting whacked by the shift to the older phones. Apple's response is to decontent the older phones to improve those margins. Give the customer less for the same price.

So the 5C is all about improving margins. What the 5C is most resoundingly NOT, is a low price phone targetted towards emerging markets. Apple continues to neglect that segment. Cook has had a clear strategic decision to make, margins or market share, and he's made it.
I completely agree with this. What people don't realize is that if you release a low price phone for China, you have to release it around the world too. Is China's market share worth the collective cannabailization around the world? Is Apple content to build a cheaper iphone with cheaper stuff and endanger their image of an high end phone developer? This isn't a simple question to answer for tim cook.
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Old Sep 11, 2013, 09:35 AM   #22
lazard
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A deal with China Mobile has not been announced, yet, despite all the hype about it. The market is disappointed.
Because the market knows that a China Mobile deal isn't going to help much when you price the 5C at 4488 yuan ($733).

UBS cited a survey of 35,000 Chinese consumers conducted by ChinaDaily.com that indicated only 2.6 percent of respondents would consider buying the cheaper iPhone at the $549 level. With a price point nearly $200 more, don't expect the 5C to be a hit there.
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Old Sep 11, 2013, 09:38 AM   #23
scbn
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What remains to be seen is though, if this strategy will work. Wrapping up last year's phone in a colorful plastic shell may not be enough to attract lots of consumers. Why not try a phone with a bigger screen? I don't know if this 5c strategy will work. Anyway, I think Apple has been too slow to respond to market changes.

Quote:
Originally Posted by jmerchlinsky View Post

So the 5C is all about improving margins. What the 5C is most resoundingly NOT, is a low price phone targetted towards emerging markets. Apple continues to neglect that segment. Cook has had a clear strategic decision to make, margins or market share, and he's made it.
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Old Sep 11, 2013, 09:42 AM   #24
absurdamerica
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Originally Posted by ValSalva View Post
The 5C cost the same as the 4S did last month. Yet it was my understanding the 4S wasn't selling well enough and Apple needed a lower priced phone.

So Apple introduces a 'new' model iPhone with last years insides at the previous 4S price but in bright colors. It will be interesting to see if this gamble pays off.
I love my iPhone but if I was one of Apple's price sensitive customers who would have previously purchased last years model I'd feel insulted and patronized by this for sure. It's like they don't expect me to understand they took last year's model and changed it up.

Next year it will be:

6 - Best
5S - Midgrade
5C - Low End

which makes me wonder what will happen the year after?

6S - Best
6- Midgrade
?? - Low End
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Old Sep 11, 2013, 09:42 AM   #25
FrozenDarkness
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Originally Posted by scbn View Post
What remains to be see is though, if this strategy works. Wrapping up last year's phone in a colorful plastic shell may not be enough to attract lots of consumers. Why not try a phone with a bigger screen? I don't know if this 5c strategy will work. Anyway, I think Apple has been too slow to respond to market changes.
This probably isn't how Apple thinks. If you think of the economy of smar tphones, every smart phone maker is slowing down, the market is saturating. I actually DON'T THINK Apple has a lot to gain by aiming for a lower market segment. Do you think Apple will win competing iwth Google in a battle to the bottom? I don't.

A bigger screen is a huge win for consumers, probably a huge loss for Apple both in terms of margins, the supply chain, and support infrastructure.

Anyway, either way, the plastic shell is a change. The iPhone 4S sold very well last year, i don't see why 5c wouldn't add to it rather than take away from
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