Apple Inc. (NASDAQ:AAPL) is still making headlines with the iPhone 6. The luxurious device has a significant influence on the Mobile device sales in the Chinese market.
China has been characterized by an influx of cheap mobile phones over the past few years, and this has greatly affected major brands. This is because China is one of the biggest tech consumers and establishing a market base in the populous country would bring significant changes in profitability for most firms.
Since the launch of the iPhone 6, Apple Inc. has been defying the negative high-end device sales that have for a long time been overshadowed by the cheaper devices in China. Chinese customers were opting for the more expensive versions, perhaps due to the considerably better quality and standards set by high-end devices. Cheaper phones have recorded lower sales for the first time since smartphones were introduced.
Apple has been able to rise above the hurdle that has limited many competitive manufacturers because of a few reasons. The company has been known to offer top quality products, and this generates loyalty among its clients. The iPhone frenzy has also played a significant role in sparking the imagination and desire for the product. According to a survey by the data research firm, IDC, the average price of a smartphone surged from $192 in thethird quarter of 2014 to $239 in the first quarter of 2015.
The significant change can mostly be attributed to iPhone sales, particularly the iPhone 6 and 6 Plus. The popularity of Apple’s new devices was key towards pushing the company into the lead in the Chinese market. One of the unanticipated reasons why the iPhone 6 has been doing so well is the bigger screen compared to the predecessors. The Chinese market seems fond of devices with larger screens.
Apple Inc. (NASDAQ:AAPL)’s CEO, Tim Cook, had previously been under a lot of pressure to reduce the iPhone prices amid fears that they would not sell well in China.