Apple iPhone will be just fine in China, thanks

Apple Online Store“After months of anticipation for the ‘official’ iPhone release in China, the news last week was not so exciting: only 5,000 iPhones sold over the first weekend,” Apple Investor News‘ Frank Cioffi writes for MarketWatch.

MacDailyNews Take: By whose count? Not Apple’s or China Unicom’s from what we can tell.

Cioffi continues, “Even the typically bullish, and usually correct, Gene Munster of Piper Jaffray called this ‘a disappointment’ and lowered his China 2010 iPhone sales forecast from a range of 1 million to 2 million to 550,000.”

“What does this news really say about the prospects for iPhone growth in China and worldwide? Not much,” Cioffi writes.

Here’s why:
1. Apple Inc. is already profiting in China from gray market iPhone sales. In fact, the China Market Consulting Group estimates that 3.5 million Chinese already owned unlocked iPhones prior to last week’s launch.
2. Apple’s carrier limitations, for China and elsewhere, are temporary and will resolve themselves.
3. The iPhone is just getting started, with new models and technologies coming.

Cioffi writes, “Last week’s China ‘disappointment’ was a short term blip in the long term growth prospects for one of the dominant technology products of the decade.”

Full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

31 Comments

  1. just so we’re clear, there is nothing ‘amazing’ about the iPhone in China. Nothing.

    Another possible name for the iPhone in China (since everybody has one in Shanghai) is..phone.

    *yawn*

    Amazing that anyone lined up for a ‘launch’ of a product that’s been here since early 2008, but hey, whatever. Knock yourselves out guys.

    Don’t forget, the iPod touch is selling, ‘officially’ absolutely everywhere, so, again, nothing new at all about the technology, etc.

    PS. Yes there are tons of Chinese iterations of the iPhone, for those who want an alternate price point.

  2. —- As I see it:

    As Apple takes 85% of the smart phone market… analysts proclaim the death of Apple. With its share only growing by single digits, its clear that Apple is dying and so everyone (except their customers) should short Apple stock…. quick….

    commissions, commissions, commissions…… ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    Just a thought,
    en

  3. @ dave

    Read Predrags post.

    So are you saying that Apple did not make any profit from any of the 3.5M phones being used in China?… regardless of where they were bought.

    Your statement would only be true if there were NO iPhones in China.

    Apple is making a profit somewhere in the world on the iPhones being used in China. Therefore Apple is profiting from iPhone demand in China, regardless of where the original sale took place.

  4. I live in China and have been waiting to buy an iPhone for some time. I am so disappointed by the Chinese version of the iPhone. I will still buy an iPhone but not a chinese one.

    Chinese iPhone: 7000RMB no wifi, pay by the MB
    Hong Kong iPhone: 5000RMB with wifi, unlocked from the start.

    I think I will buy a hong kong iPhone with my next paycheck. Simply because I save money using wifi. I can save money on the initial purchase and I can use my phone is the USA, China and else where I travel.

    Rodger

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