The lesson is this:
In China, people are not exposed to western marketing. They cherish 'value' more. For the price of the iPhone, they can get so much more performance from other manufacturers. They look at the specifications of the iPhone and think - how come that the cheapest phones are not just better in terms of battery life, but they offer more features too - radio, video recording and decent voice clarity. So partly, at least, it must come down to the fact that the iPhone is not a very good phone. It is a good gadget, but as a phone, it is just appalling.
Utter rubbish that, they are just not prepared to pay more for the 'disabled' iPhone than they can buy the fully featured one for, its as simple as that. Modern China not exposed to western marketing? Who are you kidding? They are obsessed with the west, and more so with Japan.