Tags ‘China Unicom’

China Mobile iPhone launch could lead to subsidy wars, say analysts

Image: thenextweb.com

Image: thenextweb.com

Analysts say that the official launch of the iPhone on China Mobile could lead to subsidy wars as Chinese carriers compete to attract buyers. The predictions, quoted by Business Insider,Ā follow price cuts by rival carriers China Unicom and China Telecom as China Mobile reportsĀ 1.2 million pre-orders.

China Mobile is currently offering the iPhone 5s free with a 24-month contract costing the equivalent of $98 a month. A 30-month contract on China Unicom costs $63 a month.

I do think you’re going to see a subsidy war coming,” saidĀ Michael Clendenin, managing director ofĀ Shanghai-based RedTech Advisors.Ā ”ChinaĀ Mobile, if they’re not making their targets on sales for these phones, they’re going to increase the subsidies [...] It’s like airlines: the other guys will fall like dominoes, soĀ ChinaĀ Unicom will do it andĀ ChinaĀ Telecom will do it” …Ā 

CK Lu, a Gartner analyst based in Taiwan, agrees.

You need to consider the cannibalization for sales toĀ ChinaĀ Unicom,Ā ChinaĀ Telecom and the grey market, so even though there’s an addition fromĀ ChinaĀ Mobile it will also impact sales from other channels as well.

The grey market refers to handsets smuggled into China through Hong Kong, then used on the China Mobile network. It has been estimated that there may have been more than 40 million handsets already in use on China Mobile prior to the official launch, though if the number is true it almost certainly includes a great many iPhones several generations old.

Others, however, think it unlikely that China Mobile would engage in a price-war, instead relying on its data speeds to attract customers. An informal test by theĀ WSJ found that China Mobile was delivering twice the download speed of smaller rival China Unicom.

One thing all seem agreed on, however: any subsidy wars that do take place won’t affect whatever deal Apple has already agreed with the carriers – its margins will remain safe.


Filed under: AAPL Company, iOS Devices Tagged: Apple, Apple in China, china, China Mobile, China Telecom, China Unicom, Hong Kong, iPhone, iPhone 5, iPhone 5C, iPhone 5S

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Ben Lovejoy

January 17th

Apple

Mac

In rare TV interview, Tim Cook says he is ā€˜honoredā€™ to be doing business with China Mobile

In a rare TV interview, Tim Cook described this week’s launch of the iPhone on China Mobile as “a watershed day” for the company. While the soft-spoken Apple CEO is noted for the humbleness with which he speaks, it’s hard to imagine him describing Apple as being “honored” to do business with many other companies.

I’m so honored to be doing business with … China Mobile.Ā It’s a huge announcement…we’re incredibly impressed with them, we have deep respect for them, and have had from the very first discussion that we’ve had together” …Ā 

It had been suggested that Apple found itself in an unusually weak position when negotiating with the carrier, and may have had to make significant concessions to seal the deal.

Neither Cook norĀ China Mobile’s chairman Xi Guohua would be drawn on sales expectations, but China Mobile did say that it had received 1.2 million pre-orders as of Monday. It was reported yesterday that Apple had shipped 1.4 million iPhone 5s handsets to China ahead of Friday’s launch – with no word on 5c numbers.

Analyst estimates of the likely value of the deal have varied wildly. Cook had previously spoken of the deal as “only the beginning” of its cooperation with the carrier, saying there were “a lot more things our companies can do together in the future.”

The iPhone 5s and 5c have been officially sold by both China Unicom and China Telecom since the handsets were launched last year, but China Mobile’s network dwarfs both. Both smaller carriers have cut their pricing in a bid to compete.

Apple’s stock price initially fell when the launch did not take place on 18th December as had been predicted, then rose again when the deal was finally officially confirmed.


Filed under: AAPL Company Tagged: AAPL, aapl stock price, Apple, Apple in China, china, China Mobile, China Telecom, China Unicom, Friday, iPhone, iPhone 5, Tim Cook

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Ben Lovejoy

January 15th

Apple

Mac

$0 down on both 5c and 5s in China, but high monthly cost and 3-year lock-in


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Ben Lovejoy

September 20th

Apple

Mac

$0 down on both 5c and 5s in China, but high monthly cost and 3-year lock-in

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TechInAsia reports that Chinese buyers are buying from China Unicom rather than Apple as the carrier offers both iPhone 5c and 5s with no up-front cost.

The catch? Monthly costs higher than in the USA, and contracts that run for either 30 or 36 months. Those monthly costs are massive in a country where the average monthly salary is around $800, and a 36-month contract means that buying an iPhone 5c or 5s today will see you sitting out the iPhone 6 and 6s/c/whoknowswhat.

It’s estimated that China already had 42M iPhone users before the launch of the new phones, and before they were officially supported by any of the local carriers.

Full comparison of U.S. and China Unicom costs below …Ā 

iphone-cost

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Ben Lovejoy

September 20th

Apple

Mac

All systems go for iPhone in China as regulator signs off final license

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Ben Lovejoy

September 11th

Apple

Mac

China Unicom makes iPhone 5 available for pre-order, sees 100k orders on first day

iphone 5 earbuds

Josh Ong for The Next Web:

After Apple announcedĀ late last weekĀ that the iPhone 5 is coming to China on December 14, China Unicom, the countryā€™s second-largest wireless operator, began taking reservations on Monday, quickly receiving 100,000 online pre-orders,Ā Sina Tech reports….Meanwhile, China Telecom, which began selling Appleā€™s smartphone on its network earlier this year with the release of the iPhone 4S,Ā reportedly receivedĀ 5,000 pre-orders for the iPhone 5 on Sunday.


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Jake Smith

December 4th

Apple

Mac

China Unicom makes iPhone 5 available for pre-order, sees 100K orders on first day

iphone 5 earbuds

Josh Ong for The Next Web:

After Apple announcedĀ late last weekĀ that the iPhone 5 is coming to China on December 14, China Unicom, the countryā€™s second-largest wireless operator, began taking reservations on Monday, quickly receiving 100,000 online pre-orders,Ā Sina Tech reports….Meanwhile, China Telecom, which began selling Appleā€™s smartphone on its network earlier this year with the release of the iPhone 4S,Ā reportedly receivedĀ 5,000 pre-orders for the iPhone 5 on Sunday.


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Jake Smith

December 4th

Apple

Mac

iPhone 5 Now Cleared For Sale On China Unicomā€™s Network, Too

Image (8) china_beijing_Apple_store_evening_2.png for post 335697

The iPhone 5 received its final regulatory approval, the crucial “network access license” from China yesterday, but the original report from the Wall Street Journal only found approval for the China Telecom version of the device. Now, however, Chinese news sources report that the iPhone 5 variant which works with China Unicom has also received network access approval.

That means that the iPhone 5 will likely hit both networks by sometime in mid-December, if Apple sticks to the timeline of putting its device up for sale around 2 to 3 weeks after receiving this final necessary approval from the Ministry of Industry and Information Technology. China Unicom uses a WCDMA network, and China Telecom uses a CDMA-based network, and now versions for both (codename A1429 and A1442, respectively).

A simultaneous granting of licenses should indicate neither provider will get a head start on the other, despite comments earlier in the month from the chairmen of both companies that seemed to indicate different levels of confidence in being able to launch the iPhone 5 before year’s end. It should also mean Apple will be launching the iPhone 5 to as broad an audience as possible when it debuts the smartphone in December, though subscribers on China’s largest network, China Mobile, will still have to get the device unlocked and off-contract to be able to join in on the fun.

Still, the launch should be impressive. Apple had to actually halt the iPhone 4S launch in China as crowds became unruly when it made it available to China Unicom customers in January. Then, when the 4S went on sale at China Telecom in March, Apple racked up an impressive 200,000 pre-orders for the device. That was China Telecom’s first introduction of the iPhone, making it the largest carrier in the world by subscribers to offer the CDMA version of the iPhone.


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Darrell Etherington

November 30th

Gadgets

Mobile

Samsungā€™s smartphone market share more than triple Appleā€™s share in China

Samsung’s market share in the Chinese market is three times larger than Apple’s and still growing, Bloomberg reported on Sunday. The Cupertino-based company recently began to sell its flagship smartphone on the nation’s third largest carrier, China Telecom, in addition China Unicom, which up until recently was the exclusive carrier of the iPhone in China. The new partnership, however, may be too little, too late. “I donā€™t expect Apple to replace Samsung any time soon,” Gartner analyst Sandy Shen said. “China Telecom is the nationā€™s smallest carrier, so the extent to which they can help Apple is quite limited.” Read on for more.

Apple’s smartphone market share in the country currently sits at 7.5% compared to Samsung’s commanding 24.3%. The 16.8 point gap between the two companies has nearly doubled since the third quarter, though Apple is still the top smartphone vendor globally by volume. China is a huge market though with smartphone shipments in the country expected toĀ jump 52% to 137 million units in China, overtaking the U.S. for the first time ever as the worldā€™s largest market.

Unlike Apple, Samsung offers its mobile devices on all three major carriers, including the world’s largest carrier, China Mobile. “Having access to more subscribers gives vendors like Samsung an advantage,ā€ said Teck Zhung Wong, a Beijing-based analyst with IDC China. “If Apple is going to continue to grow in the Chinese market, it has to consider very seriously a handset with China Mobile.”

Despite not selling the device, or even supporting 3G speeds with it, China Mobile currently has more than 15 million iPhone users, all of whom purchased the device unlocked.

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Dan Graziano

March 13th

Apple

200,000 pre-orders later, China Telecomā€™s 130 million CDMA customers get access to the iPhone 4S today


image via M.I.C. Gadget

Sina Tech reports that CDMA iPhone 4S’s are being snapped up by its 130 million mobile subscribers today after the No. 2 player in the world’s largest mobile market recieved 200,000 pre-orders (and counting) starting last week.

We previously noted that the iPhone 4S on China Telecom would be available in every configuration: 16GB, 32GB, and 64GB. The phone will start at ā€œfreeā€ with a contract. China Telecom received its license to sell the iPhone in January. China Telecom officially announced it would begin selling the iPhone 4S last month.



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Seth Weintraub

March 9th

Apple
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