iPhone 5s Demand Wanes in China, While Interest in iPhone 6 Accelerates

[cdmoore74]

I hope the rumors of a larger iPhone are incorrect (but sadly I think are accurate).
http://gizmodo.com/5847981/this-is-why-the-iphones-screen-will-always-be-35-inches/all

Apple used to know what people wanted more then the people themselves... more evidence that Apple is fading.

“If I had asked people what they wanted, they would have said faster horses.”
- Henry Ford

Yet when launch day comes all the large screen Apple naysayers will be lining up saying how beautiful it is. I can guarantee you that.
And it’s pretty obvious that large screen phones sale. The Samsung Note was the first to break the big phone barrier yet it’s not even in the top 10 largest here in 2014. Apple would be stupid to listen to the people stuck in 2007.
http://www.phonearena.com/news/The-...on-the-planet_id51327#11-The-6-inch-LG-G-Flex

 

[majkom]

ARE YOU SERIOUS? You have absolutely no notion about the market, especially outside the US, where Apple has less than 10% market share. People want and love bigger screens.

besides, obviously Apple would keep the 4" line, that people love. Everybody would be happy, besides trolls and people like you that have absolutely no idea of what is going around outside of their heads.

Please stop bugging us with marketshare... If apple was selling low cost-low margin phones, its market share would be much bigger.. But, who cares about low margins share? Ask htc/sony/others how well are they doing with army of low margin phones.

 

[ucantgetridofme]

"In the near term, we sensed disappointment around demand for the iPhone 5S."

Really? Where are the numbers to back that claim? How can you say you're analyzing something objectively and base said "analysis" on how you "sense" it? Furthermore, what sort of an objective variable is "disappointment"? How do you measure it? Disappointment in regards to what, exactly?

Without proper data—and even more without proper analytical variables—, that's just claim chowder, nothing else.

Fanboi in denial

 

[majkom]

This quote is NOT an accurate analogy here.... It's more like Henry Ford made a car (which people wanted) but then stuck with it. Others were making Trucks and Vans and more, but stubborn Ford said "NO! You people just want a sedan dang it! You don't know what you want; I know what you want!"

That's just burying your head in the sand. People have spoken and most want a large screen phone. If you take out the iPhone almost all smartphones sold are 4.5-5.5". Most people don't buy the iphone because it has a smaller screen; they buy it because they like the design/iOS. I know many people who have an iPhone despite the small screen not because of it...

I used to be behind Apple in this too, but my screen just feels way too small now... I think 3.5" was perfect initially, but now the technology is here to make the phone's as small/thin as possible while getting to ~5".

Big android phones are not sold only because of large screen. If you are in the market for decent/top notch android phone, you literally have no choice but buying big one. Supply drives demand here.

 

[JAT]

This quote is NOT an accurate analogy here.... It's more like Henry Ford made a car (which people wanted) but then stuck with it. Others were making Trucks and Vans and more, but stubborn Ford said "NO! You people just want a sedan dang it! You don't know what you want; I know what you want!"

I find this a bit ironic considering the F150 is the best selling vehicle in the country each of the last 32 years.

 

[lolkthxbai]

I demand Wanes, too.

Why should it only be Chinese iPhone 5s getting all the Wanes?

There you go. Enjoy.

 

[jonnysods]

This article describes me. Waiting for October!

 

[CrazyForApple]

They should be happy that Apple is now allowing them to buy them over there. If they don't like it too bad, go back to the EPhone. the iPhone 5s is a hell of a phone.

 

[Mad Mac Maniac]

Yet when launch day comes all the large screen Apple naysayers will be lining up saying how beautiful it is. I can guarantee you that.

Yeah, that's what's funny. Once Apple gives it the green light, everyone will realize that its finally ok to like big screened phones...

 

[melendezest]

We "sense disappointment"??

Who needs actual data when you're not just any "analyst" but in fact Obi Wan Kenibi?

Meanwhile, recent data here suggests the iPhone is a MASSIVE success in China:
http://m.cultofmac.com/cultofmac/#!...hone-market-in-china,5322ef34e56d0bb853553309



Who says the 5C was targeted to China? It's an evolution of Apple's previous successful pattern making last year's high-end iPhone be this year's mid-range. And it has outsold previous year's midrange. Mission accomplished, it would seem.

And who says Apple has (or should) target the low-profit bottom end of the market?

As for the high end of the market, which is not small in China, see my link above.



True: people thought that a BlackBerry keyboard was a necessity. Sometimes what people want is because they haven't tried something better.

But screen size is simpler than that: it's not a fundamental part of the experience the way a touch keyboard is. And it doesn't come with the obvious penalties (slow, crappy) that netbooks did. It has pluses and minuses, of course.

You can't say by definition that anything people want is wrong, and you can't say "old Apple" never responded to customers. They always have.

The iPhone is a maturing product. So, just like with laptops and desktops, a point comes where a choice of size is reasonable to offer. Balance that against the developer issues and it's something to weigh carefully. But the right time for it is not "never." I'd say it's now!

I disagree with the bold statement. I'd say the screen is the most fundamental part of the experience, since these devices are basically all screen.

That said, I agree one-hundred percent with regards to your point on mature products and choice. Apple needs to expand their portfolio by offering their devices in different sizes.

What else are they going to do? There is nowhere for computing devices to go, outside of the Matrix. (OK, 3D/holographic interface, maybe?)

Steve's vision of easy to use, PCs for everyone came to fruition with the iPad.

Now's the time for refinement and expansion on all categories (interpreting Steve's analogy):

Full-Size Trucks: Mac Pro, iMac, Mac mini: need something in between each. Bring back the XServe too, maybe (but better than it was)?

Small Trucks: Macbook Air, Macbook Pro: more sizes, please, and perhaps less "appliance-ness" (like soldered RAM). Not every laptop needs to be an "ultrabook".

Cars: iPad Air, iPad Mini: At least one more size (bigger).

Motorcycles: iPhone --More sizes, both smaller and larger, even into phablet territory.

As Apple said before (I believe when they decided to do the iPad Mini), it is better they cannibalize sales from themselves than give it up to the competition. They need to put the "computer" back in Apple!!

 

[alexgowers]

Why do we get people on here who still claim apple don't need a bigger iPhone?

Are they mentally retarded in some way?

Look it comes down to apple taking time to develop products, they don't rush stuff and go through years of testing. These products take 3-4 years to bring to market.

There was never just one size fits all, yes a one handed iPhone is great but trust me apple are making a large iPhone now right now!

It's not about giving people what they want, apple knows that it makes sense as the product market has matured. Apple make two sizes of almost every product they make! The iPhone is about 2 years behind the rest in catching up to that change.

I foresee massive sales for the two sizes of iPhone 6 I almost bet my life on it!

Please don't make excuses as to why it's better to have a small phone, there are none and it just looks naïve suggesting apple know best and consumers don't. There are plenty of people who have better ideas, apple just puts it all together for the right reasons.

 

[kdarling]

Meanwhile, recent data here suggests the iPhone is a MASSIVE success in China:
http://m.cultofmac.com/cultofmac/#!...hone-market-in-china,5322ef34e56d0bb853553309

That Umeng report saying that 22% of Chinese smartphone owners use an iPhone, is about total current ownership, not sales percentages... where Apple has slowly risen over 2013 from about 4% to 7% of the market (see chart below).

(The higher than sales percentage of current ownership, is likely due to the large number of used iPhones that are still around, which is a good thing.)



Interestingly, Xiaomi just announced 2014 Q1 sales of 11 million units.

Considering that they and Apple have been playing tag for the past year for fifth and sixth place, that might give us an indicator of Apple sales as well.

 

[KdParker]

I would wait too. Everyone feels that something new is coming.

 

[Mactendo]

ARE YOU SERIOUS? You have absolutely no notion about the market, especially outside the US, where Apple has less than 10% market share. People want and love bigger screens.

besides, obviously Apple would keep the 4" line, that people love. Everybody would be happy, besides trolls and people like you that have absolutely no idea of what is going around outside of their heads.

Someone can't express his opinion here without being insulted. Just dare to disagree with the party line.

----------

Why do we get people on here who still claim apple don't need a bigger iPhone?

Are they mentally retarded in some way?

And another one.

 

[SolarShane]

more evidence that Apple is fading.

Yep, millions of iPhone sales translate into "Apple is fading". Yet another Apple is doomed post. Move along.

 

[BillyBobBongo]

Please don't make excuses as to why it's better to have a small phone, there are none and it just looks naïve suggesting apple know best and consumers don't. There are plenty of people who have better ideas, apple just puts it all together for the right reasons.

Aww, that would stop the discussion...so i'm going to ignore you!

1. People that talk on oversize phones look like ****s
2. Oversized phones don't fit in my left trouser pocket, the long serving home to all my mobile phones.

 

[bzero]

I hope the rumors of a larger iPhone are incorrect (but sadly I think are accurate).
http://gizmodo.com/5847981/this-is-why-the-iphones-screen-will-always-be-35-inches/all

Apple used to know what people wanted more then the people themselves... more evidence that Apple is fading.

“If I had asked people what they wanted, they would have said faster horses.”
- Henry Ford

Unfortunately, Apple has no choice. Make big screens, or lose the market in large countries like China. It's not like the Adobe Flash Player war; Apple can't just change the preference of screen size for billions of people. Also, that's a great Henry Ford quote.

The only harm in making big screens, though, is that we app developers are going to have to deal with them.

----------

Please stop bugging us with marketshare... If apple was selling low cost-low margin phones, its market share would be much bigger.. But, who cares about low margins share? Ask htc/sony/others how well are they doing with army of low margin phones.

Who cares about low market share? Apple does. It means less money and possibly fewer sales in the future if it gets too low. Look at Microsoft's near-monopoly in the home operating system market from 1995 to like 2009.

 

[sixrom]

I demand Wanes, too.

Why should it only be Chinese iPhone 5s getting all the Wanes?

Because Wanes are known to prefer the ambiance only China offers.

----------

Someone can't express his opinion here without being insulted. Just dare to disagree with the party line.

This is especially true if ones post contains common sense, free independent thinking, and expresses a love of choice.

All characteristics that cause the devotees to get very emotional.

 

[JohnPhamlore]

The rumors of a "delay" of the 5.5-inch screen means its introduction would mean not just missing the United States but also the Chinese main gift giving / shopping season. In that case the phone might as well be postponed until late 2015. In which case such a postponement would become indistinguishable from Apple never having an intention to release such a phone in 2014 and the rumor-mongers basically just inventing the story out of thin air ...

 

[TechGod]

People wanted Apple to make netbooks. Apple said no and made the iPad.
People wanted Apple to make phablets. Apple will hopefully say no as well and make something even better.

That's impossible. the netbook and iPad example doesn't make sense in this situation at all.
This is about adding a bigger screen to the iPhone, I don't know how Apple can make it a magical new thing.

 

[charlituna]

White is something of an idiot. Like all analysts

Sales in China are likely to suck no matter the size in part due to folks wanting US models that aren't in compliance with China's strict internet laws.

It's worth it to them to pay extra for resellers to hook them up. And thus sales numbers in China will always suck

 

[tentales]

Size is cyclical

Remember the 90s ? Everyone was latching on to the next smaller cell phone.

When you're walking down the street with your Galaxy Mega or Note 3, this is what I see:

 

[koban4max]

Apple is becoming a joke as each day passes by.

 

[mojolicious]

Cantor Fitzgerald analyst Brian White is touring China and reports to investors that demand for the iPhone 5s in the Asian country is disappointing, while interest in Chinese brands like Xiaomi is on the rise.

Xiaomi appear to have five current (export) products, three of which are in the $260–$300 range, one is <$400, and only one is $480-$630 depending upon spec. Domestic pricing might well be significantly lower than export pricing (as is the case with Apple in the USA). There might well be other, presumably cheaper, non-export smart phones.

Here's some McKinsey numbers I don't understand, but surely the bottom line is that there are only so many Chinese people with $700+ to drop on an iPhone?

 

[Michael Scrip]

Who cares about low market share? Apple does. It means less money and possibly fewer sales in the future if it gets too low.

Market share is a percentage of the total market. It's not an absolute number.

Last quarter Apple sold 51 million iPhones which happened to be 18% of the smartphone market.

But it's possible for Apple to sell 60 million iPhones in the future... while only being 12% of the market.

Apple could actually make more money by selling more of their phones... while having less market share.

That's how percentages work.

Companies care about how many units they sell... instead of worrying about what everyone else sells.

Look at Microsoft's near-monopoly in the home operating system market from 1995 to like 2009.

That's actually a testament to how well Apple operates.

Apple may have only had single-digit market share against Windows all those years... but they sold enough Macs to stay in business.

Again... it's what you sell... not your percentage of the entire market.

Would it shock you to know that Honda only has 9% of the automobile market?

That's such a low number! It must be bad, right?

Hint: it's not bad.