@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
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.
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.
@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...
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...
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."