The Apple iPhone 12 range with 5G connectivity will be important in China, according to Will Wong, research manager at IDC.
5G is the term for next-generation mobile networks with extraordinary data speeds.
Apple introduced four new 5G-capable iPhone models on Tuesday. 5G networks are still new but China’s networks have been working on the expansion of coverage.
This made an impact on 5G smartphone sales, particularly from local players like Huawei.
Apple is now participating in the trend, a huge step in a market that makes for about 15% of the US tech giant’s total sales.
“If we look back to (the) second quarter of the year, almost half of the smartphones shipped in China had 5G connectivity,” Wong told CNBC. “Among the top 5 vendors in China, Apple was the only one without a 5G model. Having an upgrade of 5G will be very important for Apple to continue to attract the attention of the Chinese market.”
The world's biggest 5G smartphone market
CCS Insight, a market analysis firm, affirms that China is the world’s biggest 5G smartphone market and the country with the most number of 5G connections.
China, the world’s second-largest economy, appears to have managed the coronavirus pandemic. Economists have noted signs of economic recovery and resumption of consumer spending.
“In the pandemic era, in terms of recovery, economics and also from pandemic itself, China is ahead of other regions and countries, so it’s important for Apple to stay ahead and upgrade 5G connectivity,” Wong stressed.
Daniel Ives, the analyst at Wedbush Securities, explained that China's demand is the “linchpin to Apple’s 5G supercycle.”
“China remains a key ingredient in Apple’s recipe for success as we estimate roughly 20% of iPhone upgrades will be coming from this region over the coming year,” the analyst said in a note.
“To this point, we are seeing considerable strength from the China region over the last few months (should be a source of relative strength in the September quarter) with positive trends heading into the all-important holiday timeframe,” he said.
Chinese consumers have shown high interest in Apple’s iPhone 11 series and the cheaper second-generation iPhone SE.
Big-screen phones
In China, big-screen phones have become popular with tech enthusiasts and regular consumers. Therefore, Chinese buyers will likely favor the Apple iPhone 12 and iPhone 12 Pro. These devices feature a 6.1-inch display though the Pro version displays a higher specification camera and is more expensive.
However, the iPhone 12 Pro Max, with a 6.7-inch screen, may seem expensive for most Chinese consumers.
In terms of price, the iPhone 12 starts at 6,299 yuan ($934), which is about 17% premium to the US price of $799.
The price iPhone 12 Pro in China begins at 8,499 yuan ($1,260), while the lowest model of the iPhone 12 Pro has a 128GB internal storage.
“I believe the 12 and 12 Pro in terms of pricing and screen size will be more attractive to the consumers. The 12 Pro Max is attractive because of the largest screen size ever, but the price might not be that attractive,” Wong said.
