Chinese market will account for 15-20% of iPhone sales

The Chinese Market will Account for 15-20% of Apple's Global iPhone Sales

  • After stricking a three-year agreenment with China Unicom, Apple will ship five-sever million iPhones in China for 2010, according to one Wall Street analyst. The Chinese market will account for 15-20% of Apple's global iPhone( sales next year, estimates by Broadpoint AmTech analyst Brian Marshall.
  • The 140 million subscribers of China Unicom, they make it the second largest carrier in the country. It has 460 million customers only topped by China Mobile. Compared to 80% of China Mobile's, Brian Marshall noted that there is only about half of China Unicom's customers are pre-paid.
  • Of course, it is of little use to Apple for pre-paid customers, and the number post-paid customers the two companies have are on a similar level. It has about 70 million post-paid customers in China Unicom, and China Mobile has around 92 million.
  • "Firstly, different from the US where the smartphone market is fairly limited, appealing primarily to business users, The smartphone market in China, though, is an entertainment-oriented individual consumer market. The main reasons that Chinese mobile users purchase smartphones include entertainment (such as music players, cameras and video) and to access mobile Internet applications (such as IM, e-book, and games). "In-Stat, a market analysis group, was not surprised that the iPhone caught on in China, but did not expect such high numbers. He said, "We believe the iPhone will be favored by these consumers as it can better meet such demand. Secondly, high-end handset buyers significantly outnumber high-end mp3 player buyers. We estimate that 20% of handsets sold in China in 2007 cost more than 4,000 RMB (US$533). In another words, there are an estimated 28 million potential users for the iPhone in China."
  • China Unicom has been adamant in build its 3G network, it is an obvious requisite to host the iPhone. In the fourth quarter of this year, the carrier will begin shipping iPhones. By the way, unconfirmed reports have claimed that the Chinese iPhone will lack Wi-Fi capabilities.