How Will the iPhone 5 Do in China?
AppleOne of the questions that came out of the unveiling of the Apple Inc. (NASDAQ: AAPL) iPhone 5 is whether it can help the company’s flagging fortunes in China, the largest wireless subscriber market in the world. Apple’s share of…
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One of the questions that came out of the unveiling of the Apple Inc. (NASDAQ: AAPL) iPhone 5 is whether it can help the company’s flagging fortunes in China, the largest wireless subscriber market in the world. Apple’s share of the smartphone market in the People’s Republic stands well behind Samsung, Lenovo and several others, based on a research report from IDC that covered the second quarter of this year.
The fabulous features of the iPhone 5 are not what will make Apple a success in China, although the new model might spur consumer demand. Apple has had trouble, off and on, with the largest carriers in China, led by China Mobile Ltd. (NYSE: CHL). Carriers in most other nations are willing to pay large sums for each iPhone — sometimes several hundreds of dollars per phone — and hope to make up that money and more through multiyear subscription plans. China’s mobile carriers have resisted these fees in the past.
Apple must decide whether it will accept a margin reduction on the iPhone 5, if it wants a significant position in what may its most important market in the future.
Douglas A. McIntyre
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Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.
