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China’s Take on iPhones: It May Surprise You

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pseudoid
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Re: No exception to the "fickle" consumer
pseudoid   9/13/2013 4:30:28 PM
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@xingfenzhen >> Thank you for the correction!
It appears that they have a similar tax structure to most European countries and actually cheaper than those in UK.
China Income Tax Rate=45% (max.)
China Corporate Tax Rate=25%
China Sales Tax / VAT Rate=17%
http://www.taxrates.cc/html/china-tax-rates.html

 

xingfenzhen
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Re: No exception to the "fickle" consumer
xingfenzhen   9/13/2013 3:29:33 PM
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VAT is basically a sales tax applied to vendors. it applies to all products, both imported or and domestically made. en.wikipedia.org/wiki/Value_added_tax

junko.yoshida
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Re: No exception to the "fickle" consumer
junko.yoshida   9/13/2013 1:29:39 PM
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@pseudoid, um, this doesn't look like the actual user interface...it looks more like an app.

pseudoid
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Re: No exception to the "fickle" consumer
pseudoid   9/13/2013 1:10:09 PM
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For the answer to the 1st part of my question; this is the only image for the Chinese iPhone5C UI  I could find (via both Google/Bing images)  >>

http://tinyurl.com/mwwh2c3

junko.yoshida
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Re: No exception to the "fickle" consumer
junko.yoshida   9/13/2013 12:16:55 PM
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@pseudoid, you wrote:

 I was inclined to think [stupid me!] that since this product is manufactured in China, the VAT would not have applied for products made/sold in the same country for their own citizens.


It is a head scratcher, isn't it?

While Taiwan-based FoxConn has plants in China, where they manufacture iPhones for Apple, most of the profits generated from iPhones go to Apple, not to Foxconn. iPhone is Apple's products, not that of Foxconn. I suppose that's the logic.

 

 

pseudoid
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No exception to the "fickle" consumer
pseudoid   9/13/2013 12:03:56 PM
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Just out of curiosity, I sure would like to see the picture of what the UserInterface looks like in the Chinese version of the iPhone, especially the Chinese character set that is displayed on the iPhone for that market.
I am also somewhat perplexed about this "iPhones sold in China are subject to a 17 percent value-added tax."  >> I was inclined to think [stupid me!] that since this product is manufactured in China, the VAT would not have applied for products made/sold in the same country for their own citizens.

junko.yoshida
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Re: Add more information
junko.yoshida   9/13/2013 11:58:55 AM
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@Roswell, Thanks for your quick response, Roswell. Much appreciated. 

Yes, 5c is puzzling. It reminds me back in old days -- when I was still living in Japan, some Japanese companies launch products specifically tailored to "women and children" and they say so publicly. (Obviously, they couldn't imagine how bad it sounds!)

And those products usually went nowhere. Literally nowhere.

It's the same thing here. Once 5c was viewed as "a cheap product for China" (obviously, in this case, Apple would never dream of saying that), it's hard to imagine how attractive it sounds to Chinese...

Roswell
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Re: Add more information
Roswell   9/13/2013 11:43:09 AM
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This is the details about "the very attractive subsidy policy for iPhone 5c" I heard. Two year contract with $60/month for a iPhone5s, and two year contract with $50/month for a iPhone5c. It is very attractive policy, but....hold on a second...the difference between 5c and 5s is only $10/month.  Who will buy iPhone5c???? Everyone in China will buy iPhone5s. As I said early, iPhone5c strategy is super confusing...

junko.yoshida
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Re: Apple's time in China is counting down
junko.yoshida   9/13/2013 9:58:57 AM
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@Roswell, you wrote:

Personally I think Apple's time in China is gone due to no innovation in recent products


Having covered the mobile market for a while, I can only predict that nothing is constant in this industry. Things could change at the drop of a hat. I don't even have to point out where Nokia and Blackberry are now today.

So, in that regards, I don't particularly agree with your statement that "Apple's time in China is gone." However, I do agree with you that the lack of innovation in Apple's recent products is hurting Apple in the [high-end] segment where Apple has been traditionally strong. 5s could help but 5c doesn't count as "an innovative product."

 

junko.yoshida
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Re: assumption
junko.yoshida   9/13/2013 9:51:46 AM
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@eewiz, I tend to agree. The higher pricing for 5c for now is to give enough room for Apple and operators to come down with prices over time.

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