7 ms·

iPhones have become just too expensive for people in Asia to buy. It's simple as that. If they bring down the price to $599 like it was for the original iPhone

iPhones have become just too expensive for people in Asia to buy. It's simple as that. If they bring down the price to $599 like it was for the original iPhone and keep the price constant every year, Apple will double or even triple their existing market share. It will still be profitable for Apple knowing that service revenue will increase when more people are using iPhones around the world.

baybal2 8y ago
No, the simple explanation for their sales tanking is simply because they got their market saturated. Plainly and simple. Huawei on other hand has rather different marketing plan - they make somewhat expensive products for ordinary people, even thought some of their phones can cost more than $1000 USD in maxed out configuration (leather and hand made editions) Apple on another hand has really little appeal to this demographic, on both brand identity front, and product match. That surely sounds unusual to a Western person, but that how it is. Huawei buyer is a well off working man in late twenties or early thirties with few more things to care about in his life than his phone. Car analogy: Huawei - a nice full size sedan, a show of success for a common man; Apple - an "economy supercar" like Black Badge edition RR Ghost, something what broke millionaire wannabees buy
- Synaesthesia 8y ago
  Within China, Apple doesn't compete on price. Yes Huawei has expensive phones, but for example you can buy a Mate 20 Pro for $650 there whereas an iPhone XS costs $1,270 for the entry level model. https://www.gizmochina.com/2018/10/26/huawei-mate-20-and-mate-20-pro-chinese-pricing-vs-other-regions/ https://www.gizmochina.com/2018/10/26/huawei-mate-20-and-mat...
  - baybal2 8y ago
    > iPhone XS costs $1,270 for the entry level model. Indeed, but they also have the "3rd world iPhone" models - respins of previous generations and "C" model which were to supposedly cater to this market. They greatly overestimated willingness of locals into buying "poor man's Rolce Royce editions"
    - pjmlp 8y ago
      Who would buy a previous generation iPhone when they can buy a modern Android generation phone for the half the price?
      - robin_reala 8y ago
        Because the previous gen iPhone will still be faster than the current gen Android and probably supported for longer?
        pjmlp 8y ago
        Mobile phones are a commodity now and the large majority of consumers use pre-pay phones, replacing them only when they die, get stolen or are lost. So none of those benefits really matter.
        scarface74 8y ago
        Not according to these statistics in the US. https://deviceatlas.com/blog/android-v-ios-market-share https://deviceatlas.com/blog/android-v-ios-market-share
        pjmlp 8y ago
        US is just one country in the global market, which in your link clearly shows as being dominated by Android. I thought we were talking about China here.
        scarface74 8y ago
        Did you look at the charts and the number of countries where iOS has over 40% share?
        pjmlp 8y ago
        Yes, and I have found a minority in a planet where 80% of the world is dominated by Android and a large part of the population can only dream to have a salary comparable to an iPhone cost.
- philliphaydon 8y ago
  No. The price of iPhones in Asia is FAR to expensive now. A lot of people in Asia are jumping ship because they can get the same features for less with other brands. Even with a contract in Singapore it would cost me $1000 to get the latest iphone. That’s insane.
- puranjay 8y ago
  I used to dream of owning an iPhone. Now that I can actually afford it, I look at my OnePlus 5T and wonder why I would ever want "more phone" than it
- nojvek 8y ago
  I wouldn’t buy their $1000 phones ever. I bought my first phone outright for $500. Then all the way to $700. I’ve kept that phone for 3 years now. $1000 mark just seems too steep for something that easily breaks or gets stolen. Esp when it’s not that different from my iPhone8
  - rchaud 8y ago
    The Galaxy S7 I purchased on contract had a list price of C$899, which my monthly payments were defraying. 2 years later, it's still in good condition, but so are the Huawei and Nokia Android devices I purchased unlocked for C$300.
r00fus 8y ago
How do they do this while keeping profit margins on non-Asia countries high? That's the rub. XR was supposed to be the Asia phone with dual-sim and sacrificing OLED to get a bigger phablet. Instead we have "which X to choose" dilemma.
- dethac 8y ago
  Apple has, with the iPhone, ignored region-locked devices. By doing so, they're effectively sacrificing a massive portion of the Asian market. Oh well.

baybal2 8y ago

No, the simple explanation for their sales tanking is simply because they got their market saturated. Plainly and simple. Huawei on other hand has rather different marketing plan - they make somewhat expensive products for ordinary people, even thought some of their phones can cost more than $1000 USD in maxed out configuration (leather and hand made editions) Apple on another hand has really little appeal to this demographic, on both brand identity front, and product match. That surely sounds unusual to a Western person, but that how it is. Huawei buyer is a well off working man in late twenties or early thirties with few more things to care about in his life than his phone. Car analogy: Huawei - a nice full size sedan, a show of success for a common man; Apple - an "economy supercar" like Black Badge edition RR Ghost, something what broke millionaire wannabees buy

Synaesthesia 8y ago
Within China, Apple doesn't compete on price. Yes Huawei has expensive phones, but for example you can buy a Mate 20 Pro for $650 there whereas an iPhone XS costs $1,270 for the entry level model. https://www.gizmochina.com/2018/10/26/huawei-mate-20-and-mate-20-pro-chinese-pricing-vs-other-regions/ https://www.gizmochina.com/2018/10/26/huawei-mate-20-and-mat...
- baybal2 8y ago
  > iPhone XS costs $1,270 for the entry level model. Indeed, but they also have the "3rd world iPhone" models - respins of previous generations and "C" model which were to supposedly cater to this market. They greatly overestimated willingness of locals into buying "poor man's Rolce Royce editions"
  - pjmlp 8y ago
    Who would buy a previous generation iPhone when they can buy a modern Android generation phone for the half the price?
    - robin_reala 8y ago
      Because the previous gen iPhone will still be faster than the current gen Android and probably supported for longer?
      - pjmlp 8y ago
        Mobile phones are a commodity now and the large majority of consumers use pre-pay phones, replacing them only when they die, get stolen or are lost. So none of those benefits really matter.
        scarface74 8y ago
        Not according to these statistics in the US. https://deviceatlas.com/blog/android-v-ios-market-share https://deviceatlas.com/blog/android-v-ios-market-share
        pjmlp 8y ago
        US is just one country in the global market, which in your link clearly shows as being dominated by Android. I thought we were talking about China here.
        scarface74 8y ago
        Did you look at the charts and the number of countries where iOS has over 40% share?
        pjmlp 8y ago
        Yes, and I have found a minority in a planet where 80% of the world is dominated by Android and a large part of the population can only dream to have a salary comparable to an iPhone cost.
philliphaydon 8y ago
No. The price of iPhones in Asia is FAR to expensive now. A lot of people in Asia are jumping ship because they can get the same features for less with other brands. Even with a contract in Singapore it would cost me $1000 to get the latest iphone. That’s insane.
puranjay 8y ago
I used to dream of owning an iPhone. Now that I can actually afford it, I look at my OnePlus 5T and wonder why I would ever want "more phone" than it
nojvek 8y ago
I wouldn’t buy their $1000 phones ever. I bought my first phone outright for $500. Then all the way to $700. I’ve kept that phone for 3 years now. $1000 mark just seems too steep for something that easily breaks or gets stolen. Esp when it’s not that different from my iPhone8
- rchaud 8y ago
  The Galaxy S7 I purchased on contract had a list price of C$899, which my monthly payments were defraying. 2 years later, it's still in good condition, but so are the Huawei and Nokia Android devices I purchased unlocked for C$300.

r00fus 8y ago

How do they do this while keeping profit margins on non-Asia countries high? That's the rub. XR was supposed to be the Asia phone with dual-sim and sacrificing OLED to get a bigger phablet. Instead we have "which X to choose" dilemma.

dethac 8y ago
Apple has, with the iPhone, ignored region-locked devices. By doing so, they're effectively sacrificing a massive portion of the Asian market. Oh well.