u=595088213,1136119881&fm=21&gp=0.jpg (Photo : baidu.com)
China's young generation is trying out Apple's latest products in Beijing and experts predict that iPhone sales in the country may increase from the present 2.7 to 2.8 million range per month to probably 2.8 to 2.9 million monthly.
The push of the sales of Apple's iPhone by China Mobile Ltd is predicted to be challenged by its rivals. As an immediate reaction to Apple's partnership with China Mobile, China Telecom Corp. Ltd reduced contract prices for iPhone 5s and iPhone 5c handsets using their networks starting on Monday..
According to Sandy Shen, an analyst with Gartner Inc., a research firm, the move of China Telecoms will have a substantial negative effect on the sales of China Mobile's iPhone devices. This is born from the fact that Chinese consumers are generally price-sensitive and subsidies given by telecom carriers for iPhone handsets will have a direct effect on their consumer behavior.
Wedge Partners, an independent equity analysis company suggested in its report that the entry of China Mobile may "rob" iPhone sales from its two major competitors, China Telecom and China Unicom (Hong Kong) Ltd. According to Zhang Jun, Wedge Partners analyst, this development will have a net result of increasing total iPhone sales in China.
Zhang added that with China Mobile launching the iPhone with a clear subsidy package, the sales of non-China Mobile iPhone on the open market and by rival companies will decrease to 35,000 units per week or 1.4 million units per month.
Market feedback initially gathered shows a lower demand for the iPhone 5s at China Mobile stores compared to other carrier phone launches. According to Wedge Partners, China Mobile's pre-orders for iPhone 5s with a contract during the first two days were reported to have reached 100,000 units while China Unicom had 120,000 pre-orders and China Telecom with 150,000 pre-orders in the early part of 2013.
