Despite all odds, the iPhone 12 launches to crazy demand in China
The publication reports that consumers queued up outside Apple’s flagship shop in Beijing before its opening time on Friday in chilling weather to get their hands on the 6.1-inch models. This implies that the tensions between the US and China have not really affected Apple's brand image in the far eastern country.
In fact, most analysts are expecting the iPhone 12 to attract more attraction than the iPhone 11, which has already proven to be quite a hit in the country. It remained the best selling model for seven months straight.
Per today's report, some consumers in China might even be prepared to pay a premium of 1,000 yuan (~$150) to get their hands on the iPhone 12 in China. The phone already costs more in China than it does in the US because of taxes and duties, and it is also far more expensive than 5G handsets sold by domestic players such as Xiaomi, Oppo, and OnePlus.
China is key to the iPhone 12 supercycle
The iPhone 12 is Apple's first 5G-ready phone and it is widely expected to trigger a supercycle.
Wedbush Securities analyst Daniel Ives expects China to account for 20 percent of iPhone upgrades in the coming year. Per TF Securities International analyst Kuo Ming-Chi, iPhone 12 Pro's sales in China will make up around 35 to 45 percent of its total shipments.
The analyst also says that 1.7 to 2 million units of the iPhone 12 and 12 Pro were preordered globally within the first 24 hours. In contrast, only around 500,000 to 800,000 units of the iPhone 11 were preordered within a comparable period.
Apple also stands to benefit from Huawei's misfortunes, as the supply of the Chinese manufacturer's new flagship, the Mate 40 Pro, might be limited because of a components shortage brought on by US-imposed sanctions.
The most difficult phones in the world to buy right now: iPhone 12 Pro and Mate 40 Pro+— Ice universe (@UniverseIce) October 23, 2020
The iPhone12 Pro has a premium of 1,000 yuan in China, and the scheduled quota for Mate40 Pro+ ends within one second.