Apple too stubborn with iPhone pricing in emerging markets says the founder of Oppo and Vivo

Apple too stubborn with iPhone pricing in emerging markets says the founder of Oppo and Vivo
Duan Yongping, the founder of a couple of China-based smartphone manufacturers (Oppo and Vivo) said during an interview with Bloomberg that the iPhone is losing steam in China because Apple won't change its pricing to suit the China market. Mr. Duan points out that the non-installment price of the Apple iPhone 7 in China is equivalent to $780 USD, which is one month's paycheck for some. Even the lower priced Apple iPhone SE can cost as much as the equivalent of $476 USD in China.

Apple had a rough 2016 in China as it is no longer one of the top three smartphone manufacturers in the country. Huawei was on top followed by Oppo, Vivo and Xiaomi. Apple dropped to fifth place. Duan says that Apple's iPhone business in China suffers from Apple's continued stubbornness. According to the smartphone veteran, Apple continues to seek high profit margins even if that costs them business in countries such as China and India.


Apple has already set its sites on India, although the average Indian earns the equivalent of $3.10 a day. While the Apple iPhone 5s is the most popular model in the country, Apple is hoping that its recent launch of a 32GB Apple iPhone 6 in emerging markets becomes the new top seller in the region.

source: AppleInsider

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25 Comments

1. kiko007

Posts: 7493; Member since: Feb 17, 2016

"Apple couldn't beat us in China because even they have flaws. They're maybe too stubborn sometimes. They made a lot of great things, like their operating system, but we surpass them in other areas."-Duan Yongping, founder, Oppo and Vivo" Apple's response: That's nice Mr.Yongping. Now, talk to us when your organization can sell products outside of Asia. Better yet, come back to us when you aren't making knockoffs. Thanks for your candid opinion.

3. xondk

Posts: 1904; Member since: Mar 25, 2014

There's a lot of Asian phone brands that are arriving in western markets though so yeah..including huawai, so yeah...just saying.

5. kiko007

Posts: 7493; Member since: Feb 17, 2016

Huawei....that's it. Oh, and how well have their phones done here? The Honor 8 didn't sell well. The Nexus 6P didn't sell well. I seriously doubt the Mate 9 is selling well, etc. Besides, what does that have to do with the brand in question?

7. maherk

Posts: 6768; Member since: Feb 10, 2012

Here? You mean USA? You do realize that the US doesn't represent all Western markets? And as far as I know, Honor 8 was a success in the US, unless you have a source that backup​ your claims.

8. kiko007

Posts: 7493; Member since: Feb 17, 2016

Well, my bad. Apparently they sold 1.5 million Honor 8s in two months:http://www.androidauthority.com/1-5-million-honor-8-hansdets-sold-just-two-months-715985/ Of course that's not an entirely American estimate, but a WW one if I've read the article properly. I'll leave it to your digression whether you believe that to be an adequate source.

9. kiko007

Posts: 7493; Member since: Feb 17, 2016

As for a more up-to-date assessment, I can't find much more than that sample regarding which models sell week here. And none of this is to say it's not a fantastic phone (Honor 8) simply that Huawei's "prowess" in the American market is overstated. I've said this countless times: The American market is NOT pricing sensitive. Where I was born (Brazil) people treated buying things with a little more caution because of the lack of financing options. In the US, all you have to do to get a new iPhone is pay $300 down on contract. My point being that this market WILL NOT be penetrated with pricing alone. And that leads to my Apple point: Apple has almost zero interest in price sensitive markets. China and India are the exception to that, as their staggering population makes potential growth more available. Ultimately, I don't think slashing prices is the best approach available to Apple in that specific region. Dies that make sense?

17. ColinW

Posts: 412; Member since: Jun 04, 2014

"Apple has almost zero interest in price sensitive markets" China and India make up an awfully large part of those price sensitive markets! It also markets and sells in most, if not all the others, so it is indeed interested.

18. kiko007

Posts: 7493; Member since: Feb 17, 2016

I literally mentioned them in the very next sentence....

25. ColinW

Posts: 412; Member since: Jun 04, 2014

Yes you did, and it was that part that I was replying too. You cannot say that Apple is not interested in price sensitive markets then exclude the two biggest by far, that make up a huge part of the market you mention. Stop spouting rubbish, that even a child could see through. I would have said that it is essential for Apple to Apples long-term growth to prioritize its interest in price sensitive markets, TC and Apple obviously agree with me.

11. meanestgenius

Posts: 21769; Member since: May 28, 2014

"Rather impressively, these sales figures come only since the handset’s more limited retail launch in China." That's taken from the article you referenced. The sales of the Honor 8 from China only.

12. kiko007

Posts: 7493; Member since: Feb 17, 2016

Damn, knew I missed something.

14. meanestgenius

Posts: 21769; Member since: May 28, 2014

No worries.

15. sgodsell

Posts: 7187; Member since: Mar 16, 2013

You always have to defend Apple at all cost. Look it's no secret that Apple overcharges for their iPhones, period. It's also no secret that 70% of Apples revenue comes from their iPhones. As you always like to point out to everyone all the time about Apples record profits. Besides that anyone with half a brain could realize that an iPhone SE for $400 with only 16 GB is way too much. Especially when users can buy smartphones for half the price of an SE with double the amount of storage and 50% more ram, a 5" full HD (1920x1080) display for only $200 off contract. Yet the tiny iPhone SE can't even probably display HD content. Nevermind Full HD content. Apples greed is easy to figure out. Look at India right now Apple is charging $199 USD (equivalency of) for a 32 GB iPhone SE. Apple is still making profit on that device, or Apple would not be selling it their for that much. So clearly Apple is still making money.

16. kiko007

Posts: 7493; Member since: Feb 17, 2016

"You always have to defend Apple at all cost." I'm not defending Apple, they're the more successful business model here. What has Vivo/Oppo done for smartphone advancement? "Look it's no secret that Apple overcharges for their iPhones, period." Oh look, another dumbass stating his opinion as fact again. Color me surprised. "The rest of that hot garbage post...." Look FAM, Apple does what Apple does. Nothing you or I say is gonna change the basis of reality: Apple gets to do things Android OEMs cannot. Crying "overpriced* hasn't stopped people from buying these phones, largely in part because people don't give two s**ts about the opinions of "enthusiasts". Reasons include: A) Enthusiasts are usually socially inept. And B) Other people don't like you digging in their wallets. I don't know how it is where you're from, but where I grew up, telling people they can't buy what they want was a quick way to get your ass kicked. Apple charges what is does because people WANT what they offer. Is that true in all parts of Asia? No, because some of those countries have poultry median incomes. What about places where Apple is successful? The exact opposite is true, people have disposable income to buy luxuries/ goods that are classified by more than price tag. No spec sheet reading changes that. No crappy VR headset, 353" Quintilian HDR screen, no s**tty half baked update program. Nothing. Get over it and face the stark reality of the world outside your living room.

20. poptart574

Posts: 223; Member since: Feb 29, 2016

Vivo was the first company to usher in the very first 2k screen phone. The very first Hifi phone. The very first to introduce 3gb of ram. The first company to introduce two cameras in front of phone for the perfect selfie. The made the thinnest phone in the world at 4.75mm while still able to put a head phone jack and offer a bigger battery at 2000 mah than your iphone. They were the first company to offer a Camera phone that had the very first ois and aperture of 1.8 for great night pics. There are many firsts when it comes to Vivo.

4. marorun

Posts: 5029; Member since: Mar 30, 2015

lol Poor kiko007 :) I would say apple is too stuborn world wide on profit margin. Even if they would just be a tad lower ( lets say 100$ on iphone 7 ) they would sell MUCH more devices. loose 15% margin increase sales by 50% ( just an example ) But its okay continue to live in your lala land ;)

6. kiko007

Posts: 7493; Member since: Feb 17, 2016

You have NO idea what you're talking about. Stick to your day job mate.

13. Tabby_Tiger

Posts: 305; Member since: Jan 23, 2017

Oppo is definitely available here in Australia, I haven't seen Vivo in retail ever. Yeah, Oppo is very generic Samsung look.

21. ShaikhJGI

Posts: 359; Member since: Jan 10, 2014

@Kiko you have to agree here that Apple charges 3 times the cost they incurred for making an iPhone. Thats ok but worst part is Apple charges 3 times the extra cost it incurred for taxes in emerging markets. I bought a iPhone 6s Plus 128GB from middleeast for price lesser than US & I paid around $65 for customs at the Airport. That is still hell cheaper than what is available in the shelf here in India. There is No noo way out that Indian government charges $430 more on taxes for every top of the line iPhone 7 Plus compared to US. It is a f*****g $1400 here. Bloody hell :x

2. nebula

Posts: 1009; Member since: Feb 20, 2015

It reminds me of HTC in a way though later has no power of dictating it's will whatsoever. Eventually they dropped prices in India for SE model didn't they! That's when stubbornness takes over clear mind.

22. ShaikhJGI

Posts: 359; Member since: Jan 10, 2014

Eventually? That eventually came after 6 months & it was still costing around $600 for a mere 16GB iPhone SE. Thats really bad indeed.

24. nebula

Posts: 1009; Member since: Feb 20, 2015

It says 19999 Rs. Not sure about your numbers.http://m.gsmarena.com/india_retailer_is_of​fering_the_iphone_se_for_as_low_as_inr_19999-blog-​24051.php

10. omnitech

Posts: 1131; Member since: Sep 28, 2016

Of course. Lose a bit of profit to benefit their sheep? It never had and never will cross their mind.

19. ibend

Posts: 6747; Member since: Sep 30, 2014

and, why did they even care about apple's pricing? did they want more competition or something?

23. netizen

Posts: 73; Member since: Oct 31, 2011

Apple isn't stubborn they are Greedy.... Highest profit margins in the industry. BUT, as long as people are willing to pay the premium they charge, they will keep charging more... basic economics..... Apparently, charging so much is opening up a very successful knock off market. That is also basic economics. If it becomes too successful perhaps the prices may start to fall on Apple products....

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