iPhone 5C may become a hit in China if analyst predictions are correct
A couple of analysts believe that iPhone 5C will become a hit in China. This isn’t the first time an analyst has made this prediction. Apple’s low cost iPhone is expected to do well in China, due to its relatively low price point.
Apple is expected to unveil both iPhone 5S and the iPhone 5C next month. According to rumors, the company’s iPhone event will take place on September 10th. There’s no confirmation about that yet. Apple also hasn’t confirmed if it is indeed going to release two new iPhones this year. Analysts believe that the low cost iPhone would boost Apple’s position in the mid-range smartphone market. Customers in this market generally go for Android smartphones, it makes sense to predict that iPhone 5C might become a hit, since those users would be able to get the iPhone experience at a relatively low price as compared to a full fledged iPhone.
The latest prediction of iPhone 5C doing good in China comes from two UBS analysts, Steven Milunovich and Peter Christiansen. Their prediction is based on the outcome of Apple’s negotiations with China Mobile. They believe that both of them will be able to reach a mutually beneficial deal. The analysts believe that if both new iPhones are sold through China Mobile, Apple may end up selling 17 million units. 70 percent of these units, they believe, will be accounted for by the iPhone 5C, just because it would fall in the price bracket of most customers.
Morgan Stanley’s Katy Huberty made a similar prediction yesterday, that Apple would price iPhone 5C around RMB 4,000, which will be in the sweet spot for the Chinese market. The company is expected to start shipping units on September 20th, no word as yet when the launch will take place in China.