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Apple Priced Itself Out of Shrinking Chinese Smartphone Market

bloomberg.com

81–90 of 161 posts

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#81
I read all the comments, and nobody has mentioned consumer nationalism? The US president's behavior and the concept of face?

Apple is being dragged down the trade war's reputational halo effect. Keep an eye on major international consumer US brands (Disney, McDonalds, Starbucks, and others).

Obviously there's an rapid economic deceleration, too, but things happen for more than one reason most of the time.

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#82

Is it possible that they deliberately priced themselves in excess of the competition in an attempt to cultivate a more exclusive, high-end image? With so much competition in the Chinese market it has to be hard to distinguish themselves otherwise.

Roughly speaking, from the beancounter perspective, selling one phone for $50 profit is better than selling two phones for $30 profit each, because you only need ongoing support for one customer.

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#83

Earlier quoted context omitted.

I don't question that the super expensive phones are better than the cheap ones but they are better in ways that are so insignificant to the average person. I got a nexus 5x a few years ago for about $250 and it does everything modern phones do. Yes I have slightly less pixels in my selfie and my screen is still rectangle shaped but is that really worth the extra $800? I suspect its simply a fashion/trend thing pushe…

Give me a break. This idea that anyone who isn't buying some cheap Android phone is doing it for fashion/trend reasons is ridiculous, insulting and condescending. The fact is that I care about my privacy and security and only Apple seems to take it seriously. They also support their devices for years so I look at it like its an investment. That is easily worth the extra $10 or $20 a month I pay for my mobile phone pl…

This isn't an iOS vs. Android thing. Plenty of people would be happy with an SE 2, or even a 8S (a proper iPhone 9) that retains the home button and/or brings back the earphone jack. This drive for more pixels, more cameras, less buttons, and thinner size- it's hitting diminishing returns unrelated to privacy or security.

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#84

You can't blame it on the price of the iPhone for what's happening in China right now. Also from Bloomberg: Chinese consumer tax receipts down 70% in November. https://www.bloomberg.com/opinion/articles/2018-12-31/china-...

Why can't it be both? It seems logical that a downturn would hit luxury models most strongly. High pricing can often be self-justifying, especially if it's combined with actual higher quality - except once you reach the point that a thing involves too many material sacrifices and then suddenly the "value proposition" stops making sense.

From Apple: "over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad."

Combine that with:

"In fact, categories outside of iPhone (Services, Mac, iPad, Wearables/Home/Accessories) combined to grow almost 19 percent year-over-year."

In other words, even Mac and iPad fell in China while growing overall for the company. So the problem is not isolated to iPhones in China, consumer spending is way down. And yes, aspiring high-end products like Apple products will take a hit in a market where consumers have less money to spend.

https://www.apple.com/newsroom/2019/01/letter-from-tim-cook-...

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#85

Earlier quoted context omitted.

I don't question that the super expensive phones are better than the cheap ones but they are better in ways that are so insignificant to the average person. I got a nexus 5x a few years ago for about $250 and it does everything modern phones do. Yes I have slightly less pixels in my selfie and my screen is still rectangle shaped but is that really worth the extra $800? I suspect its simply a fashion/trend thing pushe…

Give me a break. This idea that anyone who isn't buying some cheap Android phone is doing it for fashion/trend reasons is ridiculous, insulting and condescending. The fact is that I care about my privacy and security and only Apple seems to take it seriously. They also support their devices for years so I look at it like its an investment. That is easily worth the extra $10 or $20 a month I pay for my mobile phone pl…

If you cared about privacy and security why would you buy the latest iPhone when you could get one from 2 years ago for a much reduced cost.

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#86
post #54

Earlier quoted context omitted.

Apple has never tried to compete on price and as such continues to capture most of the profit in the industry. Seems like a good business plan to me. https://gadgetmatch.com/apple-samsung-huawei-global-smartpho...

Never tried to compete on price? Then what were the basic "c" and "se" plastic bodied iPhone models?

SE isn’t plastic

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#87

I really don't understand why anyone is paying $1000+ for a phone when you can get really amazing phones for $300.

Component quality, build quality, data security and privacy and length of support/updates.

No matter how much money I pay for an Android phone, I have to fight with it to stop my data being harvested by everything from the very OS up. Sure, I can get decent quality cameras and build quality on Android phones but I’m either paying a stack of money for the likes of a Samsung or I’m paying for something from some sketchy Chinese brand.

I don’t know if any android phone manufacturer has a hardware security implementation as high quality as Apple’s and even if there were, I’m not sure how many of the manufacturers I’d actually trust to build it properly, let alone have the OS use it properly.

I’ve also got far more consistent battery life out of my iPhone X than I have out of my previous Android phones.

Am I paying a premium? Yep. Is it a premium I’m happy to pay because I actually get what I want and my data is so far, more secure than on any Android device: yep.

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#88

Chinese flagships offer better, more differentiated technology at the same or lower prices... also Android AOSP China is more desirable now because Android apps are first class citizens in China (WeChat + social + camera apps). Apple is losing it's innovation edge as well. Current flagship phone cycles in China are faster than Apple's -- triple, quad cameras, in-screen fingerprint readers, articulating selfie-cams, p…

Correct. Iphone does nothing. If Huawei could get into America it would take over.

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#89
post #40

Earlier quoted context omitted.

I've been buying/using iPhones since 2009. The last iPhone I bought was a 7+. Right after that I had sensed that Apple is messing around with us on the CPU thing, and it finally came out that they did. I now have a Honor X8, I am super content about this, it cost me 229 pounds, takes 2 SIM cards and a 128GB SD card. I can also have a firewall NoRoot Firewall), more granular privacy controls, I can root and and replac…

> Apple is messing around with us on the CPU thing Are you referring to modulating the power usage to avoid random shutdowns? If so, I don't understand why people have viewed that as a nefarious scheme. Seems completely reasonable to me. The newer user-visible stats on battery health and power usage are also a good idea, but don't change the physics involved, you still need to modulate power usage to match what is av…

They lost me the moment they kept it a secret and they practically monetized on this.

I would gladly pay for a new (£50-£70) battery every 2 years to keep my phone up and running. It is the lack of transparency that made me angry. I do have the technical skills/knowledge to understand the reasons. I also have the critical thinking to (imho) dismiss their BS answer that they force me to spend £1000 instead of £50. And this is where they killed my 'loyalty' to their products.

Re: Apple Priced Itself Out of Shrinking Chinese Smartphone Market

#90
post #49

Earlier quoted context omitted.

despite all the advertising, it may surprise you to learn that it's actually quite rare for people to buy expensive clothes. i looked it up one time. i think it said less than 1% of the jeans sold in the US cost more than 50$

Off topic, but I think jeans are a great example of a product where more money leads to a better product, especially for a well informed consumer. Japanese Selvage Denim[0] (starting at ~$80)[1] uses higher quality denim, is woven tighter, comes unstretched/untreated so that the fabric better forms to the wearer's unique body shape, and often uses natural dyes which fade slower. In my experience they last longer, fee…

True, but like most things, there's the law of diminishing returns. You'll extract most value out at your $100 price point (or even lower), and yet there are fads for Japanese denim costing a few times that. Same deal with audio etc.
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