Apple (AAPL) Will Continue Getting Lunch Eaten in China Unless Changes are Made
Yes, Apple (Nasdaq: AAPL) might need a cheaper smartphone offering if it plans to make any headway in emerging markets.
According to data out Wednesday, the company is being outsold by a much smaller device maker in China, a market Apple deemed as a key growth area over the next several years.
Bloomberg noted this morning that China Wireless Technologies is selling a ton of its Coolpad 8060. The device retails for about 619 yuan, or under $100. That's about 20 percent of what the cheapest iPhone is selling for. China Wireless' market cap is just a fraction of Apple's at $640 million.
The Coolpad 8060 runs on Google (Nasdaq: GOOG) Android platform, dual SIM, and boasts a 4-inch display, two attractive features in a low-cost device.
With the average Chinese worker earnings just $577 per month, China Wireless is hitting the sweet spot. The company expects that sales will rise 40 percent in 2013 to 28 million phones.
Apple recently opened-up financing for its iPhone with China Merchants Bank, though its too early to tell whether or not any traction is taking place with customers.
Shipments of smartphones in China are expected to rise 44 percent to 300 million units in 2013. The average cost of handsets will also hold at about 700 yuan.
Apple hasn't ruled out a lower-end iPhone, with one exec simply stating that the company strives to make the "best device for its customers."
Ahead of the bell, Apple shares are up 0.3 percent.
For another bearish article on Apple, click here.
According to data out Wednesday, the company is being outsold by a much smaller device maker in China, a market Apple deemed as a key growth area over the next several years.
Bloomberg noted this morning that China Wireless Technologies is selling a ton of its Coolpad 8060. The device retails for about 619 yuan, or under $100. That's about 20 percent of what the cheapest iPhone is selling for. China Wireless' market cap is just a fraction of Apple's at $640 million.
The Coolpad 8060 runs on Google (Nasdaq: GOOG) Android platform, dual SIM, and boasts a 4-inch display, two attractive features in a low-cost device.
With the average Chinese worker earnings just $577 per month, China Wireless is hitting the sweet spot. The company expects that sales will rise 40 percent in 2013 to 28 million phones.
Apple recently opened-up financing for its iPhone with China Merchants Bank, though its too early to tell whether or not any traction is taking place with customers.
Shipments of smartphones in China are expected to rise 44 percent to 300 million units in 2013. The average cost of handsets will also hold at about 700 yuan.
Apple hasn't ruled out a lower-end iPhone, with one exec simply stating that the company strives to make the "best device for its customers."
Ahead of the bell, Apple shares are up 0.3 percent.
For another bearish article on Apple, click here.