China iPhone Sales Successful Because of “Status”
If you think it surprising that the Apple iPhone 5 made it big in China, you haven’t seen the half of it. With Apple announcing two million iPhone 5 units sold in mainland China three days after its market release on December 14, financial analysts are giving their own wise takes on how the tech giant managed to get the attention of the Chinese techies.
The Apple Effect
Besides the high demand for good technology, analysts say that the Chinese market thirsts for the iPhone 5 simply because it is more than just an electronic product. For financial experts at Topeka Capital Markets, the main reason Apple hit it off with the Chinese market is because it is now considered a status symbol. With its strong, global branding, the tech giant managed to up its ante for the sixth generation iPhone through software updates and design changes. All these factors add up to the fact that a lot of electronics consumers view the iPhone as the greatest (not to mention priciest) smartphone in the market. Despite the fact that Apple fell to the sixth spot in China’s top 10 smartphones, Chinese electronics consumers still have a special place for the iPhone in their hearts. Remember how festive the iPhone 4S release was in China last January? It was so festive in fact that the tech giant was forced to suspend the iPhone 4S sales because of the angry mob that flocked Beijing’s Apple Store. The iPad 2 shared the same story.
Two Million Units? Really?
If you have been following the news lately, you’d have seen the very modest line that the Chinese Apple fans formed outside the Beijing retail center on the day of the iPhone 5 release. And while the news may make it seem like the Chinese consumers are not as interested as they were when the iPhone 4S arrived, a lot of analysts argued that there’s more to the line formation and the iPhone selling than meets the eye. For one thing, the tech giant’s mobile carrier partner, China Unicom reported weeks before that they already had 300,000 iPhone 5 pre-orders. That’s 100,000 units more than the iPhone 4S pre-orders they got last year.
It’s also not so surprising that people would turn to the sixth generation iPhone for their mobile surfing needs. With reports that 3G subscriptions are booming in this populous country, Apple’s products helped the Chinese people appreciate 3G usage. So much so that recent studies showed China’s 3G usage has risen by 88%. With the help of China Unicom and soon China Telecom, Apple’s reach is getting stronger and better.
Another thing that helped the tech giant sell two million iPhone 5 units without the hassle of scraping away eggs thrown by angry mobs is their new reservation system that helped organize the lines during the iPhone 5 release. Analysts are also attributing the two million units’ success to Apple’s aggressive global marketing that helped spread the brand to different parts of the world. And while Apple naysayers are still thinking the iPhone 5 isn’t worth the excitement, the numbers spoke differently. In the end, analysts like Gene Munster are confident the tech giant will have sold 45 million iPhones by the end of this year.
Twila B. is a blogger for CashforiPhones’ news site that features iPhone news, event updates and e-recycling tips like how you can sell your old or broken iPhone.
