Hotel Near Miami Beach - Apple's New iPhones May Underwhelm In China

Source    - http://www.usatoday.com/
By           - Bill Bishop
Category  - Hotel Near Miami Beach
Posted By  - Inn and Suites In West Miami

Hotel Near Miami Beach

So much for the expectation that Apple's Beijing satellite iPhone launch event would be anything special. Apple simply replayed a video recording of the California show and then allowed attendees to play with the new devices.

The new iPhones go on sale next week in China and they are very expensive. The starting prices for the 5c and 5s are $735 and $867, respectively. Given the supposed market segmentation strategy it seems strange that the 32G 5c model is the exact same price as the 16G 5s model.

Those prices are firmly at the high-end of the China market and the 5c is priced well above what many analysts expected. Those hoping that Apple was going to have a credible mid-market phone to regain market share will likely be disappointed.

The iPhone was once both the best phone and a highly coveted status symbol in China, and Apple stores witnessed near riots as customers rushed to buy. But the iPhone is no longer such an object of desire here and these models, while technically impressive, look to be too aesthetically undifferentiated to help return the iPhone to "bling" status.

As predicted in my previous post there was no announcement of a deal with China Mobile, the country's dominant mobile operator. For the first time the iPhone is compatible with China Mobile's network existing 3G and forthcoming 4G networks, which some interpret as a sign a deal is near.

Apple generates billions of dollars in China and its business here is the envy of many companies. Without a significant deal with China Mobile though it is hard to see how these new models reignite Apple's growth in this market.

Apple may have once had leverage with China Mobile, but no longer. The iPhone is a nice-to-have product for China Mobile but a deal with the carrier is now absolutely essential for Apple. Perhaps in addition to the new iPhones Apple will also have to show China Mobile an iKowtow?