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Forbes: the key to the future of iPhone X lies in China

via:威锋网     time:2018/3/15 19:09:15     readed:1376

Recently, most analysts or analysis reports say that so far, the sales of iPhone X, the most expensive smartphone for apple, are still less than expected. The analysis believed that last year iPhone X was priced at $1000, making it the most expensive iPhone in Apple's history. Apple's intentions are clear, not only to guarantee revenue growth in the decline in global smartphone sales.

However, comparing Apple's excellent sales results, iPhone X sales data is lower than expected, at least globally, apple iPhone X shipped much less than expected. Bloomberg also released a report recently that Samsung, a display panel supplier, is still supplying iPhone X OLED screen for apple, but its order number is only half of what Apple initially expected.

Therefore, the analysis is generally believed that it is the result of overpricing, because for most consumers, the price of 1000 yuan has become a key issue. In this regard, Luke Kelly, "Forbes" digital editing before Asia channel published an article in the official website, claiming that "iPhone X is the key to future China", because he believed that the $1000 for the "Chinese market" is not a problem, why?

Luke Kelly said consumers in the us tend to buy iPhone 8 and 8 Plus, because two machines are much cheaper than iPhone X, and the same European consumers are not willing to pay for the high priced iPhone X. Nevertheless, the popularity of iPhone X in China's highly prosperous cities is very high, and it is still in the fierce competition of China's domestic mobile phone brands.

He quoted a number of speeches from Counterpoint Research analysts. Among them, analyst Mengmeng Zhang said: "although considering the high pricing, iPhone X performance in China is much better than we expected, and the performance of iPhone X in China is also better than that in other markets."

In recent weeks, worldwide consumer iPhone X buying enthusiasm tepid, therefore there is analysis of the potential causes many people to stand out, most analysts attributed to various factors, such as pricing is too high, and the lack of pain points bangs screen love innovation. In any case, these reasons caused some impact or the sales figures, because Apple's last earnings report released data show that in the first quarter of fiscal year 2018 iPhone global sales of 77 million 300 thousand, compared to the same period in fiscal year 2017 decreased, but less than 1 million. Of course, because the profit margin of iPhone X is very high, Apple's revenue is increasing during this period, but the sales figures are much milder than analysts' expectations.

However, contrary to global performance, the demand for iPhone X in China is still strong, especially in urban areas. And last November, iPhone X became the best selling smartphone model in China, with a market share of 6%. Recently, research firm Kantar ComTech's global Worldpanel director Dominic Sunnebo pointed out that "different from Europe and the United States, Chinese District, most of the new iPhone X sales, although there are many iPhone users from the existing, but there are also a considerable number of users from HUAWEI, millet and Samsung Android camp, these users have to use the new iPhone mobile phone, because they think that iPhone X should be better than the other models."

Moreover, according to Counterpoint Research analyst Mengmeng Zhang, the loyalty of Chinese Apple users to Apple products is very high, although it is common in many parts of the world, but it is particularly strong in China. Mo Jia, another analyst at the same institution, said, "Apple's brand image on high-end products is still the most high and far away from the Chinese market, prompting it to continue to dominate in the high-end smart phone industry.

Besides the attraction of users from other brands and the attractiveness of high-end brands, iPhone X is so popular in China that it is also part of the user's iPhone update cycle. The iPhone 6 and 6 Plus fires in China were the most popular phones at that time, but the two generation of iPhone 6S and iPhone 7 were not so popular due to the same appearance, but they didn't sell well in iPhone 6 series. Therefore, Mengmeng Zhang believes that "it is because there have been too many iPhone 6 and 6 Plus users waiting for the arrival of the X iPhone switch, now those users was ushered in the best replacement time."

In addition, there is a lot of data to explain everything. For example, data from market research firm Canalys showed that in the fourth quarter of 2017, apple flagship iPhone X shipped to 7 million units in China, becoming the best performing model in the smartphone market. Canalys's data also showed that, thanks to iPhone X, the current average price for Apple's iPhone rose to $970, up from $798 at the end of last year.

Based on the above data and analysis, Luke Kelly believes that apple is likely to wish to use the next iPhone cell phone to continue to profit in the Chinese market.

There has been a recent rumor that Apple plans to launch three new iPhone models this year to broaden its range of products in order to expand its customer base. The first is the slightly affordable iPhone, which is mainly competing with the high-end products of Chinese mobile phone manufacturers. The second one is the upgraded version of iPhone X, the third is the iPhone with 6.5 inch screen. Obviously, the third is the most attractive. Its code name is D33, which is tailored for the richer class of China's urban market, which is very consistent with the positioning of the big screen in China's market.

Counterpoint Research analyst Mo Jia said: "Chinese consumers love the large screen mobile phone, intelligent mobile phone shipments in the fourth quarter of 2017, 6 inches or larger screen accounted for nearly 26% share, while the figure in the United States is only 10.7%." So it's not hard to imagine why the sales of "Plus" in China market is obviously better than 4.7 inches. Last year, iPhone 7 Plus, but China ranked second in mobile phone sales.

Analyst Mo Jia also said that the most Chinese intelligent mobile phone users have only one device, which is one of the reasons for their preference for large screen machine, intelligent mobile phone has become the most consumer only networking equipment, so they want their intelligent mobile phone screen as large as possible, can play games, watch video and multi task."

Finally, Forbes, editor of Luke Kelly, thinks that although the iPhone of larger size may be higher than that of iPhone X, the payment capacity of Chinese richer consumers is obviously not a problem. It can be imagined that when American and European consumers are still hesitating about the $1000 mobile phone, Chinese consumers have completed the purchase. In short, the intelligent mobile phone market has been continuously saturated, the profit rate for mobile phone manufacturers will inevitably become more important, so in the high priced high-end iPhone China comers in the market, is likely to become the key to the future of the iPhone X product line.

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