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China has ‘good news’ for Apple despite tensions with US

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The latest iPhone 12 models seem to be an instant hit in China with people queuing up outside Apple’s flagship store in Beijing to buy. Despite tensions between China and the US, sentiments of Chinese consumers are not much affected by Donald Trump’s anti-China stance.
As a report by the South China Morning Post, “compared with last year’s iPhone 11 line of phones, the iPhone 12 line is showing strong demand in China.” The report further stated that this increased demand for 5G enabled iPhones despite “stiff competition “is a testament to the continuing power Apple has to draw in Chinese consumers even as tensions with the US have intensified.” China is one of the biggest markets for iPhones globally. TF Securities International analyst Kuo Ming-Chi estimates that China will account for up to 40% of global demand for the iPhone 12 Pro.
The new iPhone 12 costs more in China than the US due to local taxes and tariffs. Despite higher prices, people in China are even spending more to be among the first ones to get their hands on the new iPhones. In fact, on the first day of the sale, some people were even reselling brand new iPhones at up to 1000 yuan (around Rs 11,000) more to buyers who were waiting in the queue in front of the Apple store.
One of the reasons for the demand in China could be the new compact size of the iPhone 12 Mini. The South China Morning Post quoting a buyer said, “Android phones are often too big. The iPhone 12 is a tribute to the classic iPhone 5s and is much lighter and thinner, and the user experience is also way better than on Android phones.”
This is interesting as people are paying almost double the price of 5G-enabled Android phones from Oppo, Xiaomi, Huawei and Chinese players for size and experience.

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