Chinese Retailers Slashing iPhone 11 Prices to Entice Reluctant Customers

[Freida]

I think you’re wrong
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I think you’re wrong too. I mean I don’t know what else to tell you. I think u r wrong. Have a nice day

Incredible. You will soon see though. Maybe try to what is happening in other countries and put 1+1 together as right now you live in a “bubble”. How can anyone say that we will be back to normal ”ish“ is beyond me. This will last months if not years to fully recover. Anyone saying otherwise is either totally insane or has no clue about economics etc.
Good example could be 2008. This will be much worse

 

[JPack]

While Samsung and others are pushing up the prices of their flagship Smartphone to beyond even Apple's pricing. Apple is going the opposite lowering its price across all of their products.

And I think it is clear now Apple finally have a different pricing strategy in China. No longer are they so fixated on US pricing + Import and Sales Tax. Hopefully this could be extended to other parts of the world.

Apple has always had a different pricing strategy in China. In the past weeks, about a dozen new 5G smartphones were launched. For the same price as iPhone 11, consumers can buy a full featured 5G device with Exynos 980 and 6.4" OLED. You don't see this kind of competition anywhere else in the world.

The iPhone 11 Pro Max sells for 12699 RMB for 512GB. Even at 1600 Off it is still 11,099 or 1570 USD, still more expensive than the official US pricing of $1449.

So I dont know why everyone seems so excited.

You're looking at MSRP, which Apple doesn't change. Apple lowered the price for authorized resellers like Suning (think Best Buy but 10x bigger).

iPhone 11 Pro Max 256GB = 9,299 RMB = $1,316

This is inclusive of 13% VAT applied to imported brands. In effect, Apple is selling iPhone 11 Pro Max 256GB for $85 less than US MSRP.

 

[Dwalls90]

I think you’re wrong

Differing opinions backed by lack of facts are always entertaining to discuss.

Fact: Apple offers varying hardware (different iPhone models), depending on the country in which they are sold. Models sold in their native country support more local cellular bands, and therefore offer faster and consistent cellular connectivity. Would an iPhone sold in China not work at all in the US? Probably not. Would it have less connectivity and slower cellular speeds, compared to a model purchased in the US? Yes.

 

[JPack]

Differing opinions backed by lack of facts are always entertaining to discuss.

Fact: Apple offers varying hardware (different iPhone models), depending on the country in which they are sold. Models sold in their native country support more local cellular bands, and therefore offer faster and consistent cellular connectivity. Would an iPhone sold in China not work at all in the US? Probably not. Would it have less connectivity and slower cellular speeds, compared to a model purchased in the US? Yes.

If you look carefully at the page, the iPhone model for China operates on exact same 28 LTE bands as the U.S. model.

The reason for the different models is the iPhone in China has dual-physical SIM while U.S. has e-SIM + physical SIM.

The cellular connectivity and speed would be exactly the same.

 

[az431]

Wonder if there are any instances of reverse scalping showing up in North America now with this arbitrage opportunity.

Did you even bother to compare the China prices to the prices in the US before posting this?

 

[lkalliance]

People already have iPhones, some are a few models old, so may as well hang on to them.

As others have already commented, with unemployment up and a current shaky economy, people will learn how to prioritize whatever money they currently have. Rent and food would be the top priorities instead of buying a newer iPhone, unless they have excess money to spend.

I think you're drawing false equivalencies. Of course rent and food are top priorities for the consumer. For some that is not an issue, and for some we can hope that it won't be an issue for long. But that's from the demand side. The vendors have the phones already, or are contractually committed to purchase. Regardless of the economic circumstances, they've got to continue to try to sell them, and if the situation is worsening then it's important to sell them soon, before the market shrinks further.

 

[RyanFlynn]

The market recognizes these things won’t last forever and Apple is the strongest company in the world?

The virus has already shown signs of peaking and cautious optimism is slowly creeping in peoples’ minds. No one here, of course.

Sure, but their supply chain is compromised, and ALL the store are closed for the foreseeable future and today, they are trading where they were during the Christmas rush in December 2019. Something is not right here.

 

[44267547]

Wish the US retailers would start slashing too.

I suspect they still will, especially during early summer Before the ‘iPhone 12’ production starts in July, to start moving bloated stock off the shelves, given there’s definitely not as many upgrades right now with carrier stores being closed Predominately, plus I think consumers are generally conserving their money at this point. I would keep watch for some heavy/lucrative discounted sale prices within the next two months from any/all carriers.

 

[dazz87]

No way. Vast majority still collecting paychecks and now have stimulus money too. Be back to work in early May about 3 weeks ready with all that pent up demand to spend. Humans forget very quickly

10 millions people filed for unemployment......... Yeah back to normal in early May........LOL

 

[JosephAW]

Even if US retailers slash prices on the 11 I'm still not ready to spend high three to four figures for an iPhone.
Looking at getting a maxed out iPhone 8 Plus for much less.
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10 millions people filed for unemployment......... Yeah back to normal in early May........LOL

I'm waiting for the banks to start offering bonuses for those with paper checks to deposit it with them. My stimulus check from 10 years ago had a 500 bonus to do so.

 

[Baymowe335]

Sure, but their supply chain is compromised, and ALL the store are closed for the foreseeable future and today, they are trading where they were during the Christmas rush in December 2019. Something is not right here.

The supply chain is likely largely fine, actually. Many people remain employed, working from home and are bored...shopping online.

I‘m not saying everything is great, but watch the market for your “S hitting the fan” barometer. When stocks are up, the market sees risk reducing. Things are better than a month ago, for sure.

 

[RyanFlynn]

The supply chain is likely largely fine, actually. Many people remain employed, working from home and are bored...shopping online.

I‘m not saying everything is great, but watch the market for your “S hitting the fan” barometer. When stocks are up, the market sees risk reducing. Things are better than a month ago, for sure.

Ok, a month ago apple stores were open, people could go outside and there were about 15 million more jobs in the country. I still don't see how the stock could be trading higher than what it was during the Christmas rush.

I guess we will just see what happens.

 

[Baymowe335]

Ok, a month ago apple stores were open, people could go outside and there were about 15 million more jobs in the country. I still don't see how the stock could be trading higher than what it was during the Christmas rush.

I guess we will just see what happens.

That’s not how markets work. The market priced in all this early on and it dropped 30%+. The market looks forward. Look at the action today. The reason it dropped was anticipation of what you already said. Now we have more info and people are getting less doom and gloom about the future.

This isn’t just about Apple, but Apple is the strongest company in the world, so people buy it on dips and to be defensive investors.

Apple retail stores aren’t the only way to get Apple products...and people will get them if they want them.

 

[RyanFlynn]

Well, I hope you're right, but we have earning reports coming... lets see how people feel then! Best of luck out there

 

[Linda Shifflett]

Perhaps, the world is realizing that this is the new reality and a learning curve for everyone. No one has the previous experience to rely on, everyone has had to learn on the go as when one gets a new device.
When I got my iPhone 11 Pro Max, I was pretty damn sure I knew how to use the camera until I decided to buy an iPhone 11 user's guide "iPhone 11 Pro and Pro Max Camera Users Guide" by Wendy Hills, oh boy, I found that the camera had more than a few hidden features you would not have known existed. You can search for it on Amazon or a similar book title "Simplified User's Guide for iPhone 11 Pro and Pro Max Camera" on Apple books and other ebook bookstores.

 

[JPack]

The big push before the launch of iPhone 5G. We saw a similar price drop for the XR last year.

With 25 million customers in February on a 5G plan, demand for 4G devices will shrink when new iPhones launch.

More evidence: Apple price cuts are due to competition from 5G handsets.

Apple iPhone Sales Surged in China, but Competition From 5G Phones Is Rising

Sales of iPhones surged 416% in March from February, to about 2.5 million units. Total handset sales were up 241% from February to 21.8 million units, though still down 23% from a year earlier.

www.barrons.com

 

[TessyMargret]

Oh! Oh! This is a precursor to the new iPhone SE!

(I'm a little focused, lol)

good