A poll conducted by a publication in China indicates that the country's users are evenly split on whether or not they would want to buy Apple Inc’s (NASDAQ:AAPL) new iPhone 12 smartphones.
What Happened: Respondents to a poll conducted by Caijing magazine were asked if they would like to buy the new 5G-enabled iPhone. While 10,000 of those polled voted no, 9,269 said yes, and 5,400 said they were still considering the purchase, Reuters reported Monday.
The iPhone is reportedly priced at nearly $815 for the “mini” model and almost $1,766 for the “Pro Max” model in China.
The steep price is putting off some customers, especially since the smartphone comes without a headphone or a power adapter, reported Reuters.
Some in China are waiting for the release of Huawei’s Mate 40 Pro later this month, even as Alphabet Inc’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Android OS-based 5G devices from Xiaomi Corporation (OTC:XIACY) and Huawei are already available.
Why It Matters: Analysts are betting on the latest iPhones to deliver sales and say that many users lay in wait for the launch of the latest model, reported Reuters.
Canalys has reportedly upped its forecast for iPhone shipments to China in the fourth quarter to a 14% year-on-year growth — from the original 1% decrease.
The firm’s Nicole Peng said that China does not view 5G as a premium feature but a “must-have feature,” and the launch is expected to lead to an upgrade cycle.
Canalys expects half of the Chinese phone owners to be using a 5G phone by the end of the year, while in the United States that figure is only likely to be 29%.
Counterpoint Research analyst Neil Shah said Apple could benefit “significantly” from U.S. trade restrictions.
The Cupertino, California-based tech giant saw a 225% sales growth in the second quarter in China and is the country’s fastest-growing smartphone maker, according to Counterpoint Research.
Price Action: Apple shares closed 2.65% lower at $121.10 on Monday.
Photo courtesy: Apple Inc.