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macrumors bot
Original poster
Apr 12, 2001
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17,405



While Apple has experienced tremendous growth in China over the past several years and the market is now responsible for approximately 15% of Apple's revenue each quarter, Apple's momentum has slowed there recently with the most recent quarter seeing a 14% decline in revenue in China year-over-year.

A Morgan Stanley analyst team led by Katy Huberty released a bullish new report yesterday suggesting, however, that Apple's rumored lower-cost "iPhone 5C" could spark a surge in consumer interest for Apple in China. According to a survey of 2,000 Chinese consumers in "Tier 1-2" cities, an iPhone 5C could lead to a 13-point smartphone market share boost for Apple in China, with a rumored China Mobile deal potentially adding another six points. Combined, those two scenarios could push Apple to a 36% share of the market in those cities, taking the lead from Samsung.
Apple could significantly disrupt the Chinese smartphone market by launching iPhone 5C. We asked respondents that are very likely to purchase smartphones in the next 12 months but did not choose the iPhone whether they would purchase a redesigned and lower-priced iPhone 5C, one of the "Mini" products from international brands, or a comparable smartphone from one of China's domestic brands. The survey indicates Apple could gain 13 points of unit share with iPhone 5C. About half of that share gain would come from Samsung, while most other vendors lose some share.
morgan_stanley_iphone_china_2013.jpg
According to the survey, the "sweet spot" for pricing on the iPhone 5C among Chinese consumers is around RMB 4000 ($486), significantly higher than Morgan Stanley's estimated $399 pricing for the device, suggesting that consumers there will generally be satisfied with the iPhone 5C as a mid-range device rather than Apple needing to compete at low-end price levels.

Morgan Stanley's results also show that two-thirds of potential iPhone 5C customers would be happy with a 3G device, as 4G networks have yet to see widespread deployment in many areas of China. The data suggests that Apple could boost profit margins and increase differentiation with the iPhone 5S by not supporting 4G LTE on the iPhone 5C, although the company's plans for the iPhone 5C in countries where 4G LTE is more prevalent could drive Apple to support the faster networks.

Apple is expected to unveil the iPhone 5S at a media event on September 10, with the iPhone 5C most likely appearing at the same event.

Article Link: 'iPhone 5C' Projected to Give Apple Huge Boost in China
 

Squilly

macrumors 68020
Nov 17, 2012
2,260
4
PA
Interesting statistics. I don't know if they could disrupt the market already there though.
 

crackbookpro

macrumors 65816
Feb 25, 2009
1,096
0
Om nom nom nom
This poly iPhone will move internationally... just move.

Don't be hesitant to see a different business avenue through utilizing more of a cloud based platform. They could curtail the market with low storage on the suspected iPhone 5C... and push the price point low at the initial buy, but have more price levels for other items in the latter.
 

Manzzle

macrumors 6502
Jun 11, 2012
294
308
Great for them! Now for the Americans, can we please us with a bigger screen?
 

macchiato2009

macrumors 65816
Aug 14, 2009
1,258
1
yet, another news dedicated to China...


news about the new iphone, fine

news about the new iphone for China, i don't care :rolleyes:
 

kidderek

macrumors newbie
Aug 18, 2013
4
0
The success of the 4s as a lower priced phone indicates that the 5C will be a success here in the US as well.
 

Tankmaze

macrumors 68000
Mar 7, 2012
1,692
328
According to the survey, the "sweet spot" for pricing on the iPhone 5C among Chinese consumers is around RMB 4000 ($486)

I'm more and more certain this will be iPhone 5 in a plastic casing, it doesn't make sense not to include siri and all other iOS features found in iPhone 5.

maybe the analyst is right, the differentiating features for the 5C is sans-LTE.
that makes sense.

can't wait for sept 10.
 

cameronjpu

macrumors 65816
Aug 24, 2007
1,322
69
yet, another news dedicated to China...


news about the new iphone, fine

news about the new iphone for China, i don't care :rolleyes:

You care enough to talk about it, which makes them money (ad impressions). If you truly don't care and want to send that message, then don't post on the thread.
 

tbrand7

macrumors 6502
Feb 8, 2013
265
0
New York
Ya know, stuff like this really bothers me. A cheap plastic iPhone does not represent Apples Culture/DNA. Apple is a premium brand! If Steve was alive, he would never allow a cheaper plastic iPhone with the sole purpose of gaining market share. I feel that Tim Cook and his executives are losing sight of what's truly important. Not only that, I feel that they are losing sight of Steve's remarkable vision for Apple.
 

Rogifan

macrumors Core
Nov 14, 2011
22,877
28,978
Ya know, stuff like this really bothers me. A cheap plastic iPhone does not represent Apples Culture/DNA. Apple is a premium brand! If Steve was alive, he would never allow a cheaper plastic iPhone with the sole purpose of gaining market share. I feel that Tim Cook and his executives are losing sight of what's truly important. Not only that, I feel that they are losing sight of Steve's remarkable vision for Apple.

Oh boy here we go again. Were the 3G and 3GS cheap plastic?

Oh and how about this?

_1999163148_9db19216.JPG
 

Erphern

macrumors 6502
Mar 6, 2013
284
69
UK
Ya know, stuff like this really bothers me. A cheap plastic iPhone does not represent Apples Culture/DNA. Apple is a premium brand! If Steve was alive, he would never allow a cheaper plastic iPhone with the sole purpose of gaining market share. I feel that Tim Cook and his executives are losing sight of what's truly important. Not only that, I feel that they are losing sight of Steve's remarkable vision for Apple.

Troll level: expert.
 

crackbookpro

macrumors 65816
Feb 25, 2009
1,096
0
Om nom nom nom
How much money would Apple really save by not including 4G?
I doubt the difference in price between the chips is that much.

Update:

Maybe it is a big difference, the iPhone 5 chip cost $11 more than the 4S chip:

http://www.isuppli.com/Teardowns/Ne...ppliers-Remain-the-Same-Teardown-Reveals.aspx

It will be 4G... the chipset is what needs to be the best(most up to date in this case) no matter what to penetrate any new market for a phone. I highly highly doubt the chipset will be limited for the iPhone 5C.

China and other countries frequencies usually require a different chip from Qualcomm/Infineon/etc than the U.S., and no matter what, the chipset will not be left behind in newer hardware nonetheless. I think Apple mostly associates with Qualcomm in the latest devices.
 

Roessnakhan

macrumors 68040
Sep 16, 2007
3,518
510
ABQ
Ya know, stuff like this really bothers me. A cheap plastic iPhone does not represent Apples Culture/DNA. Apple is a premium brand! If Steve was alive, he would never allow a cheaper plastic iPhone with the sole purpose of gaining market share. I feel that Tim Cook and his executives are losing sight of what's truly important. Not only that, I feel that they are losing sight of Steve's remarkable vision for Apple.

And prior to 2007 most of Apple's products were plastic. Are all those against Apple Culture/DNA/Premium-ness?
 

hootiefan7

macrumors newbie
Jun 21, 2013
14
11
Plastic

Weren't those white iBooks and Black/White MacBooks made of plastic. On a $1000-1500 machine? Why do people continuously say that Jobs would not have allowed a plastic device? He allowed for a whole host of plastic devices. The iPhone, iPhone 3G, iPhone 3Gs and the iPods for many generations were made of "cheap" plastic. Just because they have gone with the aluminum thing for the past few years doesn't mean that plastic is a piece of crap. :confused:

Edit: I now see that others posted the same as me while I was writing this. Sorry for the repeat...or am I?
 

Speedy Gonzalez

macrumors regular
Jun 12, 2012
153
10
Alligator Bayou
apple discriminates people with big hands ? yes they do because the iPhone 5 is just perfect for an average chinese guy-girl or my 12 year old son but not for me.

by the way slow news day :D
 

cameronjpu

macrumors 65816
Aug 24, 2007
1,322
69
Ya know, stuff like this really bothers me. A cheap plastic iPhone does not represent Apples Culture/DNA. Apple is a premium brand! If Steve was alive, he would never allow a cheaper plastic iPhone with the sole purpose of gaining market share. I feel that Tim Cook and his executives are losing sight of what's truly important. Not only that, I feel that they are losing sight of Steve's remarkable vision for Apple.

So weird considering that Steve was alive for the 3G and 3GS, huh
 

2457282

Suspended
Dec 6, 2012
3,327
3,014
They seemed to forget the scenario of an iphone 5c on China Mobile in Gold. That would give them 100%. ;):D
 
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