News & Analysis
Comment
docdivakar
Hi Junko, beyond the status symbol lure of iPhones, is there any hope for ...
junko.yoshida
Exactly, Luis. I don't think Apple wants its iPhone to be in the same category ...
Yoshida in China: Does Apple need China Mobile?
Junko Yoshida
8/23/2012 7:44 PM EDT
China smartphone supplier market share
China Mobile is said to be dead serious about their TD-LTE plan. They want to see a multi-mode, multi-frequency modem up and running before the end of this year. Marvell Technology, thus far, is the only chip company that has publicly promised to meet China Mobile’s aggressive timeline for TD-LTE modem. We shall see what happens next.
As an addendum, here are some basic facts about China’s mobile landscape.
Apple’s iPhones have been available in China for some time. They operate fine both in 2G and 3G networks by China Unicom and China Telecom. But iPhones do not work in China Mobile’s 3G network. (China Mobile subscribers with iPhones can only use their phones in the 2G network, but not in its TD-SCDMA-based 3G network.)
Many Chinese consumers adore iPhones. But it’s a product largely beyond Chinese consumers’ price range. Apple’s iPhone 4, found in China’s popular online shopping site called 360buy.com, shows a price tag of 3,599 yuan ($569).
While both China Mobile and China Telecom pledged to increase subsidies for customers’ smartphones, IHS iSuppli’s analyst pointed out that a large quantity of smartphones in China are sold directly from brands to consumers—and not through the operators.
There is one more reason why iPhone might not soon spark magic in China. As an EE Times reader commented on a “Yoshida in China” report earlier this month, in China, there are no Apple Stores. In the West, that multi-purpose storefront is a major advantage of owning an iPhone.
Related stories:
Yoshida in China: Apple falls to No.5 in China
Yoshida in China: Does China Mobile need iPhone?
China Mobile is said to be dead serious about their TD-LTE plan. They want to see a multi-mode, multi-frequency modem up and running before the end of this year. Marvell Technology, thus far, is the only chip company that has publicly promised to meet China Mobile’s aggressive timeline for TD-LTE modem. We shall see what happens next.
As an addendum, here are some basic facts about China’s mobile landscape.
Apple’s iPhones have been available in China for some time. They operate fine both in 2G and 3G networks by China Unicom and China Telecom. But iPhones do not work in China Mobile’s 3G network. (China Mobile subscribers with iPhones can only use their phones in the 2G network, but not in its TD-SCDMA-based 3G network.)
Many Chinese consumers adore iPhones. But it’s a product largely beyond Chinese consumers’ price range. Apple’s iPhone 4, found in China’s popular online shopping site called 360buy.com, shows a price tag of 3,599 yuan ($569).
While both China Mobile and China Telecom pledged to increase subsidies for customers’ smartphones, IHS iSuppli’s analyst pointed out that a large quantity of smartphones in China are sold directly from brands to consumers—and not through the operators.
Chinha smartphone supplier market share (% based on units)
In its latest research report, IHS iSuppli found that Apple ranked seventh among smartphone brands during the first half of 2012 in China. Apple’s iPhones trailed both international and local brands, as Samsung took the number one position. China’s Lenovo stood at No. 2 and China’s Coolpad at No.3, followed by Huawei, Nokia, and in sixth place, ZTE.
There is one more reason why iPhone might not soon spark magic in China. As an EE Times reader commented on a “Yoshida in China” report earlier this month, in China, there are no Apple Stores. In the West, that multi-purpose storefront is a major advantage of owning an iPhone.
Related stories:
Yoshida in China: Apple falls to No.5 in China
Yoshida in China: Does China Mobile need iPhone?
|
|
|
|
|
Navigate to related information
sprite0022
8/23/2012 9:57 PM EDT
I bet there ll be less than 10 people(globally) will be interested to read this article...
Sign in to Reply
microe
8/24/2012 4:53 PM EDT
Yoshida's articles have always been insightful, informative and interesting, including this series. Luckily, you didn't bet with your money
Sign in to Reply
bigzuo
8/24/2012 11:03 AM EDT
count 1.
I actually registered first to make my first EE comment.
Sign in to Reply
xingfenzhen
8/24/2012 12:49 PM EDT
There are Apple stores in China, however Apple really drop the ball on it's policy in China.
just earlier this year....
http://www.bloomberg.com/news/2012-01-12/apple-iphone-4s-beijing-debut-delayed-as-main-store-unopened.html
On the social front, iphone is now associated with moral dependance and what's wrong with the modern world...
http://www.youtube.com/watch?v=xG5jPdSRRqs
Sign in to Reply
junko.yoshida
8/24/2012 1:06 PM EDT
Thanks for these two links!
Clearly, Chinese people still long for iPhones. But you are saying that Apple iPhone in China is now longer just a device, but it has become more of an "icon" for "what has gone wrong with this world."
Sign in to Reply
xingfenzhen
8/24/2012 3:34 PM EDT
Well, it's part of a backslash against "status symbol" culture and actually the meaning of status in China right now. （Essentially, what's wrong with the world part, the world Gaofusuai, Baifumei and fuerdai, while the "normal" world of diaosi is been left behind and rot.)
Iphone (That video I sent you， Which is a not so hidden Nokia ad, but it went viral anyways), BMW (The famous "I would rather cry in a BMW than smile on a bicycle") and LV bags are essentially symbols of that culture.
Sign in to Reply
junko.yoshida
8/24/2012 5:57 PM EDT
I did notice the heavy references on BMW and LV in that clip.
Regardless you can afford it or not, young Japanese people are equally brand-conscious as Chinese are, when it comes to BMW, Luis Vuitton, iPhone. There are really no difference!
Sign in to Reply
xingfenzhen
8/24/2012 3:41 PM EDT
To put it simply, iphone in China has become a status symbol rather than a cool phone with cool features. Not the best, but the most expensive.
Sign in to Reply
http://www.lulu.com/spotlight/poconoarmchairreview
8/24/2012 8:13 PM EDT
Putting the notion of who needs whom for a moment, let's look at the bigger picture of continuing global economic risk. How is unsold electronics inventory in China? Probably doing better than the stuffed teddy bear market.
http://www.nytimes.com/2012/08/24/business/global/chinas-economy-besieged-by-buildup-of-unsold-goods.html
Sign in to Reply
Doug S
8/24/2012 8:40 PM EDT
Qualcomm's MDM 9615 chipset supports TD-SCDMA and TD-LTE. I see no reason why Apple wouldn't use this in iPhone 5, they are already using older versions of this chipset across their line.
So I'd say it is almost certain that the iPhone 5 will support China Mobile's network, now, and in the future as it is upgraded to TD-LTE. The only question is whether Apple and China Mobile can make a deal to officially sell and support the iPhone on their network.
Given that there are millions of jailbroken iPhones already being used on China Mobile's network at Edge speeds, there will be plenty sold to be used on China Mobile's network whether there is a deal or not. A deal would only increase these sales.
Sign in to Reply
Sanjib.Acharya
8/25/2012 2:09 AM EDT
I too agree that supporting TD-LTE on iPhone5 is important for Apple to remain in competition with Samsung. Also feel the same as others who has spoken about price competitiveness. Apple needs to do something to keep the price competitive.
Sign in to Reply
Luis Sanchez
8/26/2012 4:48 PM EDT
If there are a whole lot of unlocked and jailbroken iphones already in China, what would be the benefit for the consumer for iPhone's sold through the operator?
As mentioned previously, the iphone that enters China market through a carrier should have a lower price so that it becomes a good sale.
Though, on the other hand, considering the lure of the icon the iPhone is, perhaps they high price wouldn't be something that scares the buyers but on the contrary, something that draws the buyers who want to make a status statement.
Sign in to Reply
junko.yoshida
8/26/2012 5:28 PM EDT
Exactly, Luis. I don't think Apple wants its iPhone to be in the same category with other smartphones, which would force Apple to compete with others solely on price. The status symbol is not a bad pla to be.
Sign in to Reply
docdivakar
8/30/2012 2:29 PM EDT
Hi Junko, beyond the status symbol lure of iPhones, is there any hope for practical apps & extensions for iPhones in China, like monitoring in medical fields, lighting control in smart homes... or will those be dominated by cheaper alternatives? Do you hear any local opinions on these?
MP Divakar
Sign in to Reply