iPad 2 Launches in China to Long Lines and Sellouts

[FreeRange1]

So something that is built there, cost more than here, ah the staying power of pissed off fans still works.

Imagine if the fanboys had to pay more than say China a civil war would break out.

Ah, the beauty of the internet. Any halfwit can post. The reason they cost more in China is that there is a 17% tariff imposed by the government due to being a foreign computer company, even thought they are assembled in China.

 

[FreeRange1]

OMG, they made this in china by slave workers, and they sell them at higher price than USA? Also china average workers have the fraction of money amercian made, and they have to pay more?
wow apple is business who only care about money, they should go back to america and setup factories, so china workers can have cheaper apple product.

Before you post such an ignorant rant try getting yourself an education. First, they are not made by "slave labor". It is only the totally clueless who believe that total BS line. Second, they cost more due to the fact that the chinese govt imposes a 17% tariff on Apple products because they are a foreign owned computer company, even though they are assembled there. So go back to watching Fox, and please, don't have any children!

 

[AppleScruff1]

We've already been over this. Apple creates innovative devices that people enjoy using; not once have I said "OMG, I CAN'T WAIT TO GET MORE GAS! IT'S SO AWESOME!"

No one is forcing you to buy any Apple products, so if you don't like their pricing strategy then don't buy them. Many other people think that they are worth it.

This pricing strategy has also even been beneficial to the consumer! Thanks to Apple's ability to make profit (and sell many devices) they've been able to prepay for large amounts of components. This drives component prices down so that they can create products (iPad) that the competition has a hard time price matching.

But don't you think that gas is even more important to the world than Apple?

 

[thirteen1031]

Missing the Point Much?

But don't you think that gas is even more important to the world than Apple?

I can hear the loud "whoosh!" and see the ruffle of your hair as you let the whole point fly over your head

What is or is not important isn't the point. I'll try to explain it slowly and simply so you can understand. You see, we don't cheer the billions made by Exxon because we don't have a choice in buying gas. Electric cars are scarce as are cars that run on alternative fuels. Most of us have no choice but to pay for gas--even if we take the bus we're paying for it. So the money Exxon makes is because we need the gas, not because we thought their gas was a wonderful product and we picked it over ethanol or electricity.

Apple puts out a product and there are many others out there like it. Computers, phones, tablets. If people pick them and they make money, we assume it's because people like Apple's particular products as they could pick others. Even more to the point, people don't need those products like they need food or gas. They didn't have to spend their money on that iPad, but they did. That makes the money made by Apple a symbol of it's success in creating interesting, likable and appealing products, not a symbol of people's need for something hard to do without--like the billions made by Exxon.

So the money Apple makes indicates their success in making products people like, not products people need and have to buy because there is no other alternative.

Do you get it now, or do we need to bring the point even lower to the ground for you to see it?

 

[AppleScruff1]

I can hear the loud "whoosh!" and see the ruffle of your hair as you let the whole point fly over your head

What is or is not important isn't the point. I'll try to explain it slowly and simply so you can understand. You see, we don't cheer the billions made by Exxon because we don't have a choice in buying gas. Electric cars are scarce as are cars that run on alternative fuels. Most of us have no choice but to pay for gas--even if we take the bus we're paying for it. So the money Exxon makes is because we need the gas, not because we thought their gas was a wonderful product and we picked it over ethanol or electricity.

Apple puts out a product and there are many others out there like it. Computers, phones, tablets. If people pick them and they make money, we assume it's because people like Apple's particular products as they could pick others. Even more to the point, people don't need those products like they need food or gas. They didn't have to spend their money on that iPad, but they did. That makes the money made by Apple a symbol of it's success in creating interesting, likable and appealing products, not a symbol of people's need for something hard to do without--like the billions made by Exxon.

So the money Apple makes indicates their success in making products people like, not products people need and have to buy because there is no other alternative.

Do you get it now, or do we need to bring the point even lower to the ground for you to see it?

I understand perfectly. Baaaa! Baaaa!

 

[bbmiLo]

i've been living in shanghai for the past 3.5 years, that 15% is tax, similar to VAT in the UK, this is placed on all luxury type items, cars see an even higher markup, you could see BMW's sell for $25K USD in the US and easily sell for $50K USD in China, 200% markup.

the reasons are several fold, the government can do anything they want, they want a part of the cut, and sometimes this tactic is used to limit competitiveness of foreign brands, an example is the car space, the chinese brand cars like cherry sell for under $5K USD (worth that price, too).

regarding the flagship apple store in shanghai, i was there the night before the ipad 2 launch just passing by and i noticed that they had a long line already building up. personally the wifi models are not that useful, i want 3G.

and i'm a little insulted about reading some comments about an agrarian culture moving into industrial, china already passed that stage during the eighties. the upper class has grown since the nineties. and there is no middle class in china, you're either rich, or poor. people lining up to buy ipad2 are rich.

i have lived in a number of big cities like atlanta, boston, tokyo (japan), and shanghai. it wasn't until i came here to shanghai that i felt poor, granted that tokyo is one of the most expensive places in the world. and i'm making easily over 6 digit USDs. i've never seen so many ferraris, lamborghinis, bentleys' in my life. people buy stuff in cash here and often times in sets. now it's certainly not a majority of people that can roll like that here, but there are many, you see these things daily. hence my feeling of being poor.

house prices in china are also through the roof, easily over half a million USD for a 100 square meter flat in downtown. people also buy these with cash.

Small correction, the imported vehicle taxes is 147%, so a 400k USD Lamborghini will be $1M in China, some cars like BMW's and Benz's sold there are assembled there, therefore slightly less taxes.

As for real estate, 1/2 mil does not buy you a downtown pad anymore. The going rate for nice location is around 100k rmb per sqm, which translates to $1400+ USD per sqft, that's on par with nice area in Manhattan.

For the rest of it, you are right on.
Only very small % of people in China are rich, but the base is 1.4 billion, so the absolute number is still pretty big. Shanghai and Beijing are the top two cities where most of the money is at, it's no surprise ballers and how they roll is in your face on daily basis.

 

[cactus33]

The stock lasted for 4 hours? That's quite a lot actually.

Here in Hong Kong, the online store was out of stock after 1-2 hours, and the Apple Retailer where I bought mine only had 35 iPad's !

 

[cactus33]

they are not made by "slave labor".

Although it's not technically "slave labour", you should be aware that it is almost as bad. These people have little or no job opportunities, so when they get a job, they don't want to loose it and are trapped in their employment, where they receive little pay, and have to work hour and hours overtime. The workers at Foxxcon (or what ever the company is called that makes Apple products) have had so sign an 'anti-suicide' pledge, promising not to kill themselves. These workers live in horrible conditions, and are forcedly 'humiliated' by their peers and bosses if their production falls behind quota.

Before you ask, I live in China, and I know for a fact that you have been fundamentally misguided.

 

[bbmiLo]

Although it's not technically "slave labour", you should be aware that it is almost as bad. These people have little or no job opportunities, so when they get a job, they don't want to loose it and are trapped in their employment, where they receive little pay, and have to work hour and hours overtime. The workers at Foxxcon (or what ever the company is called that makes Apple products) have had so sign an 'anti-suicide' pledge, promising not to kill themselves. These workers live in horrible conditions, and are forcedly 'humiliated' by their peers and bosses if their production falls behind quota.

Before you ask, I live in China, and I know for a fact that you have been fundamentally misguided.

Not exactly so.
Remember, we can not judge their situation using USA standard.

A big percentage of the population in China are from the rural area, their usual option is to farm the land for a living, that's why many of them go find work in a big city, like those workers at FoxConn.
Before the 13 or so consecutive suicide at FoxConn, the workers were paid 1400 RMB per month, which equals $215 USD, and their room and board are taken care of. For comparison, a college graduate working a white collar job in Shanghai (the most expensive city in China) earns 3000 RMB, so the FoxConn salary is not bad at all. Of course, not that you or I will ever work there, but for China standard it's quite fair.
I do agree those workers are working a dead-end job without much hope for advancement, but that's the same in every other country including USA, a percentage of the population are bounded to work dead-end jobs.

No one knows exactly why the dozen or so people suicided, it's suspected that it's the management method, FoxConn is a Taiwan company, they like to enforce Japanese style corp management, perhaps that was too harsh for those workers to handle. Some think the continuous suicide is a chain reaction because FoxConn paid out big settlement to victim's family.
FoxConn since has raised salary by 30%, things seem to be fine right.

Therefore, I won't say the FoxConn workers are almost as bad as slave workers.
Oh yeah, before you ask, I live in China too, most of time, Shanghai to be specific.

 

[stanluca]

So something that is built there, cost more than here, ah the staying power of pissed off fans still works.

Imagine if the fanboys had to pay more than say China a civil war would break out.

It's actually not much more if u add in the tax we pay. In China the prices are including sales tax.

 

[JAT]

i've been living in shanghai for the past 3.5 years, that 15% is tax, similar to VAT in the UK, this is placed on all luxury type items, cars see an even higher markup, you could see BMW's sell for $25K USD in the US

OMG, where are the BMWs for $25K? I'll take one.

For the less intelligent on these forums, here is why this is most likely sarcasm: "Not possible!! Count them again!!"

Actually, many people that are unable to identify sarcasm and various forms of entendre are those that are autistic/aspergers. Many of those have a higher than average IQ, although their social abilities/understanding is very poor.

 

[Gutwrench]

http://www.china.org.cn/china/2011-05/08/content_22517755.htm

 

[akicebear]

My understanding of the price differences (in addition to the comments on luxury and VAT tax differences): Apple's production centers in China are/were located in export zones, any thus and products made there which are then sold domestically are subject to import tariffs (which can be significant in China).

 

[28monkeys]

So now, there is one giant market in Asia that Apple can rely on instead of Jabroni pie eating, LaLALALALALA, eyebrow fading americans

 

[Apple OC]

looks like the scalping is continuing ... just closer to home now

 

[28monkeys]

i've been living in shanghai for the past 3.5 years, that 15% is tax, similar to VAT in the UK, this is placed on all luxury type items, cars see an even higher markup, you could see BMW's sell for $25K USD in the US and easily sell for $50K USD in China, 200% markup.

the reasons are several fold, the government can do anything they want, they want a part of the cut, and sometimes this tactic is used to limit competitiveness of foreign brands, an example is the car space, the chinese brand cars like cherry sell for under $5K USD (worth that price, too).

regarding the flagship apple store in shanghai, i was there the night before the ipad 2 launch just passing by and i noticed that they had a long line already building up. personally the wifi models are not that useful, i want 3G.

and i'm a little insulted about reading some comments about an agrarian culture moving into industrial, china already passed that stage during the eighties. the upper class has grown since the nineties. and there is no middle class in china, you're either rich, or poor. people lining up to buy ipad2 are rich.

i have lived in a number of big cities like atlanta, boston, tokyo (japan), and shanghai. it wasn't until i came here to shanghai that i felt poor, granted that tokyo is one of the most expensive places in the world. and i'm making easily over 6 digit USDs. i've never seen so many ferraris, lamborghinis, bentleys' in my life. people buy stuff in cash here and often times in sets. now it's certainly not a majority of people that can roll like that here, but there are many, you see these things daily. hence my feeling of being poor.

house prices in china are also through the roof, easily over half a million USD for a 100 square meter flat in downtown. people also buy these with cash.

What r you crapping about? China without middle class? What have you been doing in my Shanghai for 3.5yrs? Hiding in far east slum? Do you even know that people who line up there are just there to be part of the hype. Stupid bunch of fake consumers !

 

[JAT]

http://www.china.org.cn/china/2011-05/08/content_22517755.htm

Damn!! Just like Black Friday at Walmart in the USA. Small world.

 

[twoodcc]

glad to see ipad 2 still selling well everywhere. great for apple

 

[bbmiLo]

What r you crapping about? China without middle class? What have you been doing in my Shanghai for 3.5yrs? Hiding in far east slum? Do you even know that people who line up there are just there to be part of the hype. Stupid bunch of fake consumers !

He isn't wrong.

Although I don't agree with him that all the Chinese people buying iPad2 are rich people, they are just normal people who like the Apple gadgets, most are young people who are still partially dependent on parents. The rich Chinese people usually do shopping outside of China, where things are cheaper and easily available.

He is right about China not having a middle class, of course it depends on your definition of middle class, but it's large true, and that's the potential instability in long run that China government is worried about.

 

[teloche]

He isn't wrong.

Although I don't agree with him that all the Chinese people buying iPad2 are rich people, they are just normal people who like the Apple gadgets, most are young people who are still partially dependent on parents. The rich Chinese people usually do shopping outside of China, where things are cheaper and easily available.

He is right about China not having a middle class, of course it depends on your definition of middle class, but it's large true, and that's the potential instability in long run that China government is worried about.

China is very rich much more then the USA, if we where so rich explain the deficit and why we invade every oil rich country to force them to sell their oil in US dollars., with out these wars the Dollar would not still be the world currency with our deficit and bank robbers on wall street.

nice system

 

[ma2ha3]

It's probably because of import tax... Yes it's stupid to charge the Chinese import tax for a made-in-China product, but I think that's what's happening.

import tax? i am not sure if it is happening, i heard you can buy fake iphone and ipad in china at 100 us dollars. I never seen it, but my friend did. I will not touch such a product.

 

[ma2ha3]

:] It's called "Work for your need, nothing is free." Unlike people like you, who show no appreciation. I am glad that Steve Job has a different mind process than your; or else, Apple would of went broke already. It's *BUSINESS*, all about money; not cheeseburgers and tacos.

well, before apple manfacture in china, it was usa, japan and singapore, apple product was expensive and only used by a small minority, now it is widely available.

All thanks to china and their slave workforce. Imagine working in USA, that pay you little and treat you like a prisoner. macdonald and walmart is close, but not as bad as foxcon slave driver.

I just say give the chinese a break, even if you sell USA price, you can still make a profit, dun you want your employee to buy one? like ford who made car available for their workforce many donkey years ago.

 

[ma2ha3]

Before you post such an ignorant rant try getting yourself an education. First, they are not made by "slave labor". It is only the totally clueless who believe that total BS line. Second, they cost more due to the fact that the chinese govt imposes a 17% tariff on Apple products because they are a foreign owned computer company, even though they are assembled there. So go back to watching Fox, and please, don't have any children!

come on, have you read the situation in working condition in the factory that build apple product?
It is modern day slavery to me.
Either you do not care, do not want to know, or you are the slave driver working in foxcon. If you are working in foxcon, your company disgust me.

 

[ma2ha3]

Although it's not technically "slave labour", you should be aware that it is almost as bad. These people have little or no job opportunities, so when they get a job, they don't want to loose it and are trapped in their employment, where they receive little pay, and have to work hour and hours overtime. The workers at Foxxcon (or what ever the company is called that makes Apple products) have had so sign an 'anti-suicide' pledge, promising not to kill themselves. These workers live in horrible conditions, and are forcedly 'humiliated' by their peers and bosses if their production falls behind quota.

Before you ask, I live in China, and I know for a fact that you have been fundamentally misguided.

it actually worse than that, i bet the USA prison system treat their inmate better than workers of foxcon in china.