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
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
