China and the luxury iPhone

Something interesting was happening in China when the new iPhones were launched. According to most analysts, the cheaper iPhone option – the iPhone 5c – should have been more desirable for the market.

Obviously, someone forgot to tell the Chinese. Of the nine launch countries for the device, none showed less interest in the iPhone 5c than China – and more interest for the high end version.

That leads to fascinating conclusions.

  1. The chinese middle class seems to be much stronger than most analysts expected.
  2. Apple products don’t seem to be “overpriced” for the chinese market, it seems they are doing just fine.
  3. The Apple brand seems to be regarded even higher than most people expected (the price for the iPhone 5s equals about four months of pay for the average Chinese.)

Or could it simply be that the strength of the iPhone 5s in general just shows that Apple charges too much for the lower-tiered iPhone 5c / the perceived value is too low? Should Apple really change it’s strategy? If yes, why? What do you think?

Let me know in the comments.

Link to the original article:

  • Mavericks_Guerrilla_Consulting

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