Apple can't push iPhone 6 to China, its shares drop in response

Apple can't push iPhone 6 to China, its shares drop in response
Apple may be doing well with its iPhone 6 pre-orders as far as the markets in the Western hemisphere are involved; however, the Cupertinians' shares seem to be plummeting today. It seems that the culprit is their inability to get the iPhone 6 across to markets in China.

Indeed, we heard earlier that the first wave of new iPhones would not hit Chinese markets, and, while Apple is keeping mum on the matter, the general speculation is that the new devices were not approved by China's Ministry of Industry and Information Technology (MIIT) – a state agency that has to approve every electronic device, before it hits Chinese markets. This speculation is backed by the fact that MIIT has yet to state that the iPhone 6 has been approved – something that the agency regularly does on its own website.

21st Century Business Herald got a hold of an anonymous source, who's "close to Apple", who said that this is, in fact, true, and Apple may have to wait until next year, before it could try and reach an agreement with MIIT.

China Mobile, on the other hand, says it is not at all concerned by the fact that it will not be able to offer iPhone 6 units soon, as the carrier has decided to change its strategy. Instead of offering subsidized devices to its customers, the operator prefers to start pushing affordable smartphones, made by China's own manufacturers. This way, China Mobile intends to cut down a hefty $2 billion budget it uses to help customers get pricy flagships, and reach more consumers at the same time.

China Mobile chairman Xi Guohuatold said “The direction of our development is to completely focus on the mass market. We have 4G devices selling for 1,000 yuan. I believe, subsidy or no subsidy, discount or no discount, the common person will be able to appreciate this.”

The current price of a subsidized iPhone 5s from the carrier is $860 (5,288 yuan) down and ~$63 (388 yuan) per month (most expensive option), whereas a Huawei G620 – a low mid-range smartphone with a 5" qHD display and a 1.2 quad-core SoC – costs $195 (1,199 yuan) off-contract.

So, between the Cupertinians' inability to bring its latest flagship to the largest smartphone market, and the world's largest carrier saying that it's much more interested in selling cheaper handsets anyway, Apple's shares fell by 1.4%, while China Mobile marked a 3.8% fall of its own shares.

source: Bloomberg via BGR

Related phones

iPhone 6
  • Display 4.7" 750 x 1334 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A8, Dual-core, 1400 MHz
  • Storage 128 GB
  • Battery 1810 mAh(14h 3G talk time)
iPhone 6 Plus
  • Display 5.5" 1080 x 1920 pixels
  • Camera 8 MP / 1.2 MP front
  • Processor Apple A8, Dual-core, 1400 MHz
  • Storage 128 GB
  • Battery 2915 mAh(24h 3G talk time)

FEATURED VIDEO

66 Comments

1. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

China man understands that there are better options for their hard earned Yuan's.

20. synot

Posts: 277; Member since: Sep 14, 2012

That's why China is above America in wealth and America is always in recession ,woe full waste woe full wants.

49. willard12 unregistered

Nominal GDP in Millions $ 1 United States 16,244,600 2 China 8,358,400 3 Japan 5,960,180 4 Germany 3,425,956 5 France 2,611,221 6 United Kingdom 2,471,600 7 Brazil 2,254,109 8 Russia 2,029,812

61. FerneyZan

Posts: 113; Member since: Jul 21, 2010

This is not entirely correct.. Is not in Millions, is not even in Billions.. Its in TRILLIONS On top of that.. Not only the United States does twice the GDP of China, but it does it with less than 1/4 of the population...

27. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

This is baaad for Apple. China market was how Apple planned on growing in the next year. Elsewhere, there were sales from upgrades. But China was going to be a whole new kettle of fish. I guess not now. Maybe for the next edition iToy.

32. androidrocks

Posts: 62; Member since: Apr 14, 2012

Or maybe they are taking "safety measures" after the iCloud fiasco...lol

34. tedkord

Posts: 17303; Member since: Jun 17, 2009

No, China understands protectionism and doesn't believe in fair play. They know they can get away with it because they control so much of our manufacturing, we don't dare rebuke most favored nation status or retaliate in kind.

43. Finalflash

Posts: 4063; Member since: Jul 23, 2013

Yea, China understands protectionism, that's why they didn't veto that one home company while vetoing that other Korean company for similar issues right. Also, that one trial where the jury just kept going against that same Korean company for infringing patents that were soon invalidated, that was serious protectionism...oh wait no, that's the US. At least the Chinese company had a solid excuse (ones that even US companies are giving), they don't like Apple's BS policies of paying for all iPhones upfront.

52. dimas

Posts: 3342; Member since: Jul 22, 2014

Even old chinese people are techies so they know that iPhones are big rip-offs in terms of specs. And they got Xiaomi and Huawei so it's not hard for them to get options.

54. ardent1

Posts: 2000; Member since: Apr 16, 2011

@ArtSim98: Do you understand that the term "China man" is a racist phrase and an ethnic slur. Thanks for showing your true colors.

63. ArtSim98

Posts: 3535; Member since: Dec 21, 2012

Wtf there was nothing racist about my comment... Calm down dude... Thanks for trying to save the world...

64. Sniggly

Posts: 7305; Member since: Dec 05, 2009

Nah, I kinda agree, "China man/Chinaman" is often used in a derogatory or racist manner against Chinese people and Asians as a whole.

59. InspectorGadget80 unregistered

next thing we will know some poor kid will sell another kidney or lung just to buy the iP6.

5. kwirin

Posts: 26; Member since: Sep 16, 2014

MIIT is just short of saying that there are better phones that are less costly than iPhone 6. :)

6. Chuck007

Posts: 1410; Member since: Mar 02, 2014

More like they want to give their own brands a chance in the premium smartphone market. ;)

7. Antimio

Posts: 313; Member since: Nov 11, 2013

China market is pretty clever.

25. synot

Posts: 277; Member since: Sep 14, 2012

Not everyone likes to throw their money away and then turns around and borrow.

8. D.Lamore

Posts: 198; Member since: Aug 15, 2014

Good move China, keep it up

9. blingblingthing

Posts: 943; Member since: Oct 23, 2012

What's the criteria China? The mobile OS should be not more than 1 year behind android?

10. rahul.niks

Posts: 86; Member since: Oct 31, 2013

They save even after getting better,,,btw i liked this year's iPhone, what i don't like is their iNnovation, its time they should admit that they too copy.

11. XPERIA-KNIGHT unregistered

Lol they took a 3.8% share fall for this though....we'll see how well they make up for that. Could be smart, could be dumb.

26. synot

Posts: 277; Member since: Sep 14, 2012

Its early days yet, china phones are on the rise as a matter of fact Xiaomi has overtaken Samsung as Chinas number one seller lately.

12. PAPINYC

Posts: 2315; Member since: Jul 30, 2011

Amazing: in a country where bootleg rules and counterfeit is king, the all original iPhone 6 Plus Supersize can't even get into the market?! iThink the real reason is because the Chinese are not iStupiD.

14. XPERIA-KNIGHT unregistered

Youre right papinyc Lol they honestly shouldn't even have the right to make this call.

16. Pattyface

Posts: 1658; Member since: Aug 20, 2014

Lol China... Because they are such a nuisance I say make them last

17. Sniggly

Posts: 7305; Member since: Dec 05, 2009

All this means is that Best Buys are going to get flooded by Chinese resellers again, just like every year. Also, I bet China's MIT is holding out in the hopes of squeezing a big payout from Apple to approve the new iPhone. Government corruption is a bitch.

28. synot

Posts: 277; Member since: Sep 14, 2012

If you spit in the sky it will fall back in your face. also if you live in glass house don't throw stones.

29. Sniggly

Posts: 7305; Member since: Dec 05, 2009

I'm sorry, why are you saying that to me?

46. Scott93274

Posts: 6031; Member since: Aug 06, 2013

Confucius is confused I guess....

55. synot

Posts: 277; Member since: Sep 14, 2012

Its directed at Apple but is in relation to your post about Best Buy being flooded by Chinese sellers in which I want to point out that Apple wants to flood china with their phones while their backyard is being flooded by Chinese phones, or every action brings a reaction ,if you catch the meaning of my lines. In other words what goes around comes around. Also the part about Government corruption being a bitch. Remember when Obama vetoed the ban against Apple but not against Samsung, that's also part of what my lines in the former post means. We should be careful what we do or say, it might come back to haunt us, no offense meant.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.