Apple’s iPhone 11 Series’ Sales in China might Decrease

September 11, 2019 | Wednesday

Technology

   

Apple’s newly released iPhones on Tuesday do not have 5G capabilities. Analysts told CNBC that the U.S technology giant’s performance in China might be damaged because it doesn’t have 5G capabilities and hefty premium that Chine users must pay for the latest iPhone 11 series.

For Apple, the second-largest economy is a crucial market for them, and it has struggled in recent times. According to Counterpoint Research, China's market share dipped to its lowest level in a year in the second quarter. The analysis showed that the shipments of iPhones are also declined.

The premium pricing of iPhone’s last series – the XR, XS, and XS Max – is one of its problems that put off some Chinese consumers. However, Apple’s new iPhone 11 range still has a hefty price tag in China.

According to an analysis by CNBC, Chinese consumers have to pay a premium that’s between 10.5% and 12.5% for the iPhone 11, and 18.6% to 23% more for the iPhone 11 Pro and Pro Max compared to the prices in the U.S.

The equivalent of the new iPhone 11 and the cheapest of the range, the premium was 28% compared to last year’s XR. Significantly, that has come down. But the premium for last year’s XS and XS Max is not too much higher than the iPhone 11 Pro and Pro Max which was 26%. Retailers in China cut the prices of last year’s iPhone models last January. A few months later, Apple announced its official price slash.

Neil Shah, Research Director at Counterpoint Research told CNBC that after ten years of operations in China with local manufacturing, Apple still commands -20% premium which is quite high for a market less developed in terms of per capita spending than the U.S.

However, given the premium is lower than the Pro and Pro Max and compared to the XR, the iPhone 11 might still find love in China.

   

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