Apple’s New Budget iPhone is Expected Low Sales in China Due to 5G Issues

The newly launched Apple Inc.’s (Apple) new iPhone SE, which is considered to be a budget-conscious smartphone, is less likely to have a significant impact in Chinese markets since the new phone lacks the 5G capability that most new Chinese smartphones in a similar price range have offered.

The US tech giant is facing tougher competition in smartphone markets in Chinese as many rivals have started releasing 5G devices with a budget price while Apple has yet to upgrade the facility in its iPhones.

Low Sales of New iPhone

A poll was conducted on social media site Weibo regarding a survey on the newly launched and cheapest iPhone, it was reported that 60% of roughly 350,000 respondents said they would not buy the $399 model Apple’s smartphone. Meanwhile, nearly a fifth of respondents shared a view that they would buy it, and the rest said they would consider a purchase.

Although there was no option in the poll to understand the reasons for why they would decline to buy the phone, many commented they would buy the product if the price drops further.

A Weibo user, whose comment got more than 10,000 likes, said, “If you don’t buy it and I don’t buy it, tomorrow the price will drop another 200 yuan ($28).” Meanwhile, the company announced that it would start taking orders for the phone on its website on Friday, with deliveries expected to start April 24.

Most China-based analysts believed that the new model, iPhone SE would be popular among those loyalists of Apple brand who also wished not to spend roughly $700 for the high-end iPhone 11. Mo Jia, who tracks the global smartphone industry at research firm Canalys, explained, “The new iPhone SE will for sure attract mid-range users who don’t take 5G connectivity as a necessity.”

Apple’s Sales in Chinese Markets

Although China has been Apple’s third-biggest market, the sales of the company’s products in the country dropped sharply shrank over the past several years since Chinese Android brands have been releasing higher-end phones at affordable prices.

According to government data, Apple had shipped 2.5 million iPhones to Chinese vendors in the month of March, which was five times higher than the same month a year earlier and a sharp jump from just 500,000 in February when the coronavirus outbreak reached its peak in China.

With a slight improvement in the virus situations in China, Apple has restarted opening its stores in the country while the spread of the virus had prompted governments around the world to impose lockdowns and other social distancing measures.

However, it was reported last week that several Chinese online retailers had reduced iPhone 11 prices by giving a heavy discounted as much as 17%. Under some circumstances, Apple occasionally allows its Chinese seller partners to cut prices for boosting demand, although it seldom allows pricing leeway for vendors overseas.

A source said that tech investors have been observing the trends of their markets in China and preparing for how demand for consumer devices might rebound once the coronavirus pandemic subsided. The company is considering whether iPhone sales in China can help in making up the loss of sales that is happening elsewhere.

I’m Roshan, a journalist, blogger and music lover. I like covering global news related to finance, business, and technology. Focusing on the collection of true and reliable information, I rely on working by conducting interviews with business leaders and talking to the inside sources of companies.

You can reach out to me at: [email protected]

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