Apple's new iPhone 11 range commands a premium of up to 23% in China. Analysts say the price, along with a lack of 5G phone, could hurt sales in China.
However, with 5G networks being built in China and the Chinese consumer known for looking for cutting-edge features, Apple could be at a disadvantage against local rivals.
"While I didn't expect it, I think the lack of a ... 5G modem option will hurt sales in China," Patrick Moorhead, founder of Moor Insights & Strategy, said in a note on Tuesday. 5G networks take time to roll out and widespread coverage is not instant. But over the next few years, they will offer a wider area of coverage and reliability. Apple is waiting for this to happen, analysts said.
"The lack of 5G is little surprise. Whilst it stands to impact Apple in key markets such as China, Apple has opted to echo its approach with 3G and 4G by waiting for networks to be established so it can deliver 5G at scale with maximum impact," Ben Wood, chief of research at CCS Insight, said in a note on Wednesday.Apple is also facing some broader issues in China related to the trade war with the U.S.
With Huawei in the crosshairs of the U.S. — and facing restricted access to American technology — the Chinese firm has increased focus on its domestic market. In the second quarter,Tariffs also continue to be a black cloud hanging over Apple given the fact that the majority of iPhone assembly takes place in China.announced a delayEach morning, the “Beyond the Valley” newsletter brings you all the latest from the vast, dynamic world of tech – outside the Silicon Valley.
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