Slashdot Mirror

← Back to Stories (view on slashdot.org)

Apple Forges Agreement With China Mobile

Posted by timothy on from the but-gold-is-the-only-color-offered dept.

Forbes is one of several news sources reporting that Apple and China Mobile have agreed on a plan that will bring the option of iPhones to tens of millions of customers of the Chinese carrier. A separate article contains something that may be at least as interesting as the deal itself, and that's some speculation on what sort of network China Mobile will be using for all those iDevices.

11 of 79 comments (clear)

  1. Peak Apple 2012 by tuppe666 · · Score: 5, Interesting

    Apple desperately needs to stay relevant with its continues to drop behind in market share worldwide, and is soon to retain relevant only in the relatively small market of the US (UK and Japan maybe) where the high subscription masks the overpriced midrange iPhone. China Mobile does not have high subscription rates

    The reality is though is that that this deal is unlikely make much impact (it will result in new sales). The iPhone is already available in China it is about 1% of the market (The claims of 20% apply to measures in a few stores in cites and rightly have been laughed away)

    Apple needs to drop its(compete on) price to remain relevant in a worldwide market. Putting last years phone in cheap plasic only helps their bottom line.

    1. Re:Peak Apple 2012 by fullback · · Score: 4, Interesting

      I live in Japan and it seems like everyone I see has an iPhone.

      I just got back from a business trip to Beijing and it seemed like everyone had an iPhone.

      But hey, what would I know?

    2. Re:Peak Apple 2012 by MightyYar · · Score: 3, Insightful

      They don't need to fight an attrition battle for market share - they just need to keep enough high-end users so that their platform remains the preferred launch point for developers. They don't need the most users - they need the most users who actually purchase apps.

      So long as they can keep that position, they have no incentive to drop margins.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    3. Re:Peak Apple 2012 by jon3k · · Score: 2

      This is Slashdot where Apple is evil and only market share (and not revenue or profits) matter. Welcome and enjoy your stay!

    4. Re:Peak Apple 2012 by YabooYig · · Score: 2

      When I last visited China, the vast majority of people had Samsung phones.

      I saw a particular preference for large screen devices.

      IMO it will be difficult to get the Chinese to pay the price of a Galaxy Note for a device with a 4 inch screen.

    5. Re:Peak Apple 2012 by whisper_jeff · · Score: 3, Insightful

      Apple desperately needs to stay relevant with its continues to drop behind in market share worldwide...

      Apple continues to grow their sales and Apple continues to pull in more profit than any other manufacturer (and only one other manufacturer is even close - all others are MILES AND MILES behind). Despite their market share being watered down due to cheap, inferior, "smartphones" that are really just feature phones running Android. I mean, really, for anyone using a top end smartphone, would you ever use, as your regular phone, one of the cheap options that are out there watering down the market share numbers? Do you seriously even vaguely put them in the same category as an iPhone or Galaxy S4 or HTC One?

      I don't think Apple really cares about losing the bottom end of the market to subpar phones and I find it immensely amusing that people still think their loss of market share despite increasing sales is of any concern to them. If you think Apple cares about losing to a market in which they aren't even competing, then you're not paying attention.

      Or, to put it in a car analogy so people understand, do you think that BMW and Audi care about $15k and less cars being sold? Protip: No. No they do not.

    6. Re:Peak Apple 2012 by jon3k · · Score: 2

      There are people that appreciate a premium product and are willing to pay more, and those that aren't. It's why Toyota and BMW are both successful companies. It's also why I call BMW an "exceptional company" even though their products are significantly more expensive. I certainly appreciate your position and it's one shared by a lot of people. I don't think that makes either of us wrong, it's just a difference of opinion. But it's also why I'm less concerned over market share and who makes a genuinely better product, which for me, currently, is an iPhone 5S. And before you get your pitchfork out, I was a Galaxy Nexus user before this and I thought it was a really good phone.

      But I have to disagree with your use of the phrase "price gouge" when referring to smartphones -- there are plenty of alternatives out there. Maybe I just use too narrow of a definition of the term but I typically reserve the phrase for some kind of necessary or somewhat necessary commodities that someone has the only supply of for sale.

      Remember that even though Apple's PERCENTAGE of the overall smartphone marketshare is decreasing, their TOTAL marketshare is INCREASING, just not as fast as the total market size, mostly because the market is increasing into areas that are far more price conscious (read: China). But, Apple just signed this deal with China mobile so I'll be very interested to see what happens. This is the huge growth market for Android that has allowed it to rapidly outpace Apple's growth with incredibly cheap, low end Android "smartphones".

  2. Re:Apple in China by Anonymous Coward · · Score: 3, Insightful

    Please explain how Apple can move iPhone production to China.

  3. More like 1% by tuppe666 · · Score: 2, Interesting

    Apple currently has 15% market share in the world's largest, and fastest growing, cell phone market. Talk amongst yourselves, discuss.

    Except those figures are laughable. Other measures claim 1%...the ones that include the whole of china not just one or two inner city stores. Worldwide Apple marketshare has been flat at 5%-7%

    1. Re:More like 1% by jon3k · · Score: 3, Informative

      And their percentage of mobile revenue and profits? Apple always sold a premium product, I don't think they have any desire to lead in marketshare.

  4. Re: Profits vs Market Share by Karlt1 · · Score: 2, Informative

    Untrue. You can get a Galaxy S4, and HTC One for .99c for free, or a Nokia 920 compared to the the 5s that runs between $125 and $199. You can get an S3 free whereas the the 5c runs between $25 and & $99. /i work for a major Telecom and I have to keep track of pricing of who is selling what, for how much, and where.

    Neither the s4 or the HTC One have the performance levels of the 5s.

    http://www.anandtech.com/show/7335/the-iphone-5s-review/5

    Their performance comes nowhere near the iPhone 5s.

    And are you really saying that a $25 difference between the s3 and the (faster) 5c is consequential - especially considering the 2 year contract?