Apple (NASDAQ:AAPL) Takes China by Storm
Apple (NASDAQ:AAPL) seems swell in light of huge demands for new iPhone 6 and iPhone 6 Plus in the last few weeks. With each annual launch, Apple (NASDAQ:AAPL) hits sale figures that exceed the previous year performances. However, this year, iPhone witnessed a delay in its launch in the Chinese market due to regulatory approval of new phones. The Ministry of Industry and Information Technology in China has to undergo a process of approving new iPhones for network access before retailers are allowed to sell them. A month’s delay has made it difficult for Apple (NASDAQ:AAPL) to make an accurate calculation of pre orders and number of sets sold so far. Huge volumes of IPhones, smuggled into the Chinese market also pose a dilemma. IPhone is set to make its official appearance in China on Friday, October 17. But regardless of that, Apple (NASDAQ:AAPL) seems to have taken the Chinese market by a storm. The pre-orders are projected to be over 20 million for both IPhone models, half of which are requested by China’s big telecom carriers, such as China Mobile, China Unicom and China Telecom.
Besides that, the Gray market continues to thrive within China in terms of IPhone sales, even before the official launch announcement. The iPhone 6 prices within the gray markets have gone as high as $2000. These are iPhones, smuggled in from other countries. The first batch of smuggled units was priced at $3000 each. A 64 GB model in space gray color was set at $2546, which is double the original price. On the other hand, the silver 64 GB was priced at $9266. The Gray market exporters seem to have made a lot of profit on these devices.
But since the announcement of its official launch in China, the prices declined rapidly to even lesser than the original. For example the 16 GB version in space gray can be purchased for 200 yuan, far less than the original price. This is another selling strategy that seems to be working well for the consumers. One main factor that encourages customers to purchase from the gray market is the heavy Chinese import duty on Electronics.
As the figures haven’t been confirmed by a reliable source yet, no official announcement has been made by Apple (NASDAQ:AAPL). Otherwise these numbers would have been a landmark for Apple (NASDAQ:AAPL) sales, as these numbers out do the pre-orders set in the US and elsewhere. As past reports confirmed, Apple (NASDAQ:AAPL) pre-orders were at 4 million for the first 24 hours but actual sales of the iPhone round up to 10 million according to current calculations. In the past, Apple (NASDAQ:AAPL) sold record figures of the iPhone 5S units in China.
As the iPhone is Apple (NASDAQ:AAPL)’s most important device and is also considered a moneymaker, analysts have set high expectations on its sale and performance, considering 59 million iPhone sales during the year’s fourth quarter throughout the globe. Shares of Apple (NASDAQ:AAPL) have been up by 80% at $101.53.