Expensive iPhone only manages 7th place in China

first_imgSmartphones are an expensive product to buy, which is why so many of us opt to sign up for a 2-year contract in order to get the latest handsets at a reasonable price. The iPhone C$269.63 at Amazon is no exception, but the cost of Apple’s smartphone seems to be a major stumbling block in the biggest market in the world: China.Unlike in Western markets where you can get a subsidized phone in return for a contract commitment, the Chinese tend to buy their phones outright. When you consider a typical factory worker in China earns about $350 a month, and the 16GB iPhone 4S costs $649 off contract, you can see the problem. This also accounts for why some individuals are going to extremes including selling their own organs in order to afford such devices.With that in mind, it’s not too surprising to find that Apple only has a 7.5% market share in the territory, and comes in 7th. The number one position is held by Samsung (21%), and Nokia is still doing better there coming in 5th.The solution to the problem seems to be producing a cheaper iPhone for China, but Apple has stated it has no intention of doing that. You could also argue Apple doesn’t need to worry about China with billions in the bank and the iPhone doing swift business in other major markets around the world.China is a massive, untapped market, though, with a population of more than 1.3 billion. Clearly Apple isn’t ignoring that market, but it can’t ignore rivals such as Samsung doing so well there. The desire to own an iPhone also means many look-a-like phones are appearing, and we all heard about the fake Apple Stores that started appearing in China last year.Apple can afford to play the long game with China, and with every new iteration of the iPhone the company has older models it can offer at a lower price point. Maybe that’s a tactic that could work–the cheap iPhone China needs is just last year’s model.Read more at CNNlast_img read more