The iPhone 12 has arrived in China, and Apple fans are already lining up for it — just not necessarily at stores.
At an Apple store Friday in Beijing’s Wangfujing neighborhood, there was no line out the door like there has been on previous launch days.
Because of the coronavirus pandemic, customers had to present a QR code on a health app on their smartphones to enter the store. Apple has taken a different approach to the launch this year, asking people to order online and banning walk-ins at many of its stores due to public health restrictions. It has also set up small kiosks where customers can pick up goods instead of crowding in a store.
But online, there was plenty of excitement about the launch. On Friday, several of the top trending topics on Weibo, China’s version of Twitter, were related to the new iPhones. And since last Friday, JD.com, a Chinese tech giant that is also an authorized Apple reseller, has seen more than 500,000 preorders for the iPhone 12 Pro, according to data listed on its website.
While that is only one platform, there are early signs of “very strong demand” for the new devices, said Nicole Peng, vice president of mobility at research firm Canalys.
Some local media reports had indicated that one of the iPhone models in China is already being offered by unauthorized resellers for about a 10% markup, showing that “people are willing to pay extra,” added Peng.
The iPhone 12 lineup, which was revealed 10 days ago, is critical to Apple’s plans in China. The company has lagged behind local rivals in the world’s biggest smartphone market for years, though it is pushing to change that, particularly as the Chinese economy recovers from the pandemic at a quicker clip than other major economies.
The new devices could help give the company a much-needed boost. Currently, Apple’s market share in China is estimated to be only about 8% to 9%, according to analysts. That, however, is expected to grow to about 10% by the end of this year, according to Peng.
One of the main drivers for that is the arrival of the new phones, she said. “I believe they’ll have a positive reception in the market,” Peng added, citing the new addition of 5G and the phones’ competitive pricing.
The iPhone 12, for example, starts at $799. That’s considered cheap by some people, given that Apple has previously sold phones for $1,000 and don’t have 5G.
Many people in China say Apple was late to the 5G game, given that the wireless technology has long been available there, said Peng.
“There was a fair amount of expecting 5G to arrive [on the iPhone] last year, but it didn’t,” she said. “So there is pent-up demand there.”
Apple’s launch also comes at a good time in China. In just a few weeks, Alibaba will hold Singles Day, its biggest online shopping festival. Retailers typically offer sales during the period leading up to the event, which could mean hot iPhone deals that help to drive sales for Apple, according to Peng.
Even before the arrival of the new phones, Apple was making inroads in China. In the first half of this year, Apple and Huawei were the only top smartphone sellers to see growth in shipments in China, according to Canalys. The rest of the top 5 vendors suffered double-digit percentage declines, the research firm said.
Apple’s growth is expected to continue. In 2021, its market share in China is expected to jump to 13%, primarily because of uncertainty related to Huawei’s supply chain, said Peng. While Huawei is currently the market leader in China, it has been largely cut off from buying US technology, including certain chips for its popular smartphones.
— CNN’s Beijing bureau contributed to this report.
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