iPhone 5s Demand Wanes in China, While Interest in iPhone 6 Accelerates

Friday April 4, 2014 6:23 AM PDT by Kelly Hodgkins
Cantor Fitzgerald analyst Brian White is touring China and reports to investors that demand for the iPhone 5s in the Asian country is disappointing, while interest in Chinese brands like Xiaomi is on the rise. This cool sentiment towards the iPhone may change when an iPhone 6 model with a larger screen arrives later this year.

iphone_5s_china_mobile
Interest in a large-screened iPhone model among Chinese vendors and carriers is reportedly very high, possibly making the next iPhone launch a "special" one for Apple.
In the near term, we sensed disappointment around demand for the iPhone 5S. That said, we heard great enthusiasm around the potential for Apple to introduce a larger iPhone form factor in China this year with the iPhone 6. In our view, the iPhone 6 with a larger screen (e.g., 4.7-inch, 5.5-inch) has the potential to meaningfully accelerate Apple's growth trajectory in China during 2H:14. We have not heard this type of excitement in China around the iPhone in at least two years and thus we believe this could be a very special iPhone launch for Apple.
China has been a focus of Apple in recent years, with the company opening new retail stores and bringing both the iPhone and the iPad to wireless carriers in the Asian country. This year alone Apple has introduced a TD-LTE version of the iPad and launched both the iPhone 5s and 5c with China Mobile, the world's largest mobile carrier with approximately 772 million subscribers.

Apple's next iPhone model is expected to arrive in two display sizes, with one near 4.7 inches and the other at approximately 5.5 inches. The 4.7-inch model may debut this fall, while the 5.5-inch is rumored to land sometime in 2015.

57 comments


Top Rated Comments

(View all)
Avatar
barkomatic
67 months ago
Apple can't get a larger screened iPhone out soon enough. They've been lagging too far behind on this feature.
Rating: 8 Votes
Avatar
losthorse
67 months ago
-- removed by user --
Rating: 7 Votes
Avatar
polterbyte
67 months ago
"In the near term, we sensed disappointment around demand for the iPhone 5S."

Really? Where are the numbers to back that claim? How can you say you're analyzing something objectively and base said "analysis" on how you "sense" it? Furthermore, what sort of an objective variable is "disappointment"? How do you measure it? Disappointment in regards to what, exactly?

Without proper data—and even more without proper analytical variables—, that's just claim chowder, nothing else.
Rating: 7 Votes
Avatar
colmaclean
67 months ago
I demand Wanes, too.

Why should it only be Chinese iPhone 5s getting all the Wanes?
Rating: 7 Votes
Avatar
69Mustang
67 months ago
Demand Wanes?

Someone Demand Wanes? Here you go.:D
Rating: 5 Votes
Avatar
the8thark
67 months ago
People wanted Apple to make netbooks. Apple said no and made the iPad.
People wanted Apple to make phablets. Apple will hopefully say no as well and make something even better.
Rating: 4 Votes
Avatar
Shaun, UK
67 months ago
Making 4.7" & 5.5" models makes no sense. They will go with one new 5" iPhone 6. Tested the HTC M8 and Galaxy S5 recently. Both have 5" screens and both felt comfortable to hold and use. Use the same 5" screen in the next iPod touch to maximise economies of scale and boost sales to handheld gamers.
Rating: 4 Votes
Avatar
KUguardgrl13
67 months ago
Of course Chinese 5s sales are slowing in anticipation of the iPhone 6. I would bet that's the case for Apple internationally. No news here.

I do hope they keep a 4" model around. If not I'll have to look at the "mini" androids or just keep my iPhone 5 and accept I'm paying too much after my contract is up with VZW in January 2015.
Rating: 3 Votes
Avatar
majkom
67 months ago

ARE YOU SERIOUS? You have absolutely no notion about the market, especially outside the US, where Apple has less than 10% market share. People want and love bigger screens.

besides, obviously Apple would keep the 4" line, that people love. Everybody would be happy, besides trolls and people like you that have absolutely no idea of what is going around outside of their heads.


Please stop bugging us with marketshare... If apple was selling low cost-low margin phones, its market share would be much bigger.. But, who cares about low margins share? Ask htc/sony/others how well are they doing with army of low margin phones.
Rating: 3 Votes
Avatar
majkom
67 months ago

This quote is NOT an accurate analogy here.... It's more like Henry Ford made a car (which people wanted) but then stuck with it. Others were making Trucks and Vans and more, but stubborn Ford said "NO! You people just want a sedan dang it! You don't know what you want; I know what you want!"

That's just burying your head in the sand. People have spoken and most want a large screen phone. If you take out the iPhone almost all smartphones sold are 4.5-5.5". Most people don't buy the iphone because it has a smaller screen; they buy it because they like the design/iOS. I know many people who have an iPhone despite the small screen not because of it...

I used to be behind Apple in this too, but my screen just feels way too small now... I think 3.5" was perfect initially, but now the technology is here to make the phone's as small/thin as possible while getting to ~5".


Big android phones are not sold only because of large screen. If you are in the market for decent/top notch android phone, you literally have no choice but buying big one. Supply drives demand here.
Rating: 2 Votes
[ Read All Comments ]