Apple lowered the price of some of the 11 models of the iPhone.
According to Tianmao data, the sales of the first day of pre-sale of the iPhone 11 increased by 335% compared with that of the iPhone XR. According to data from Jingdong, pre-sale sales of the iPhone 11 increased by 480% year-on-year.
Since the launch of Apples new iPhone 11 series on September 11, there has been no pause in the comments on it on social networking sites in China, and related topics have been on the hot search list many times. About its bathing bully camera, absent 5G, innovative weak Tucao occupied the mainstream of opinion, but since the opening of 20 pre-sale in September 13th, the sale of the iPhone11 series is unexpectedly hot from the data released by the mainstream domestic e-commerce platform. Among them, new color matching versions such as Dark Night Green are out of stock on many platforms.
On the other hand, the netizens were all over the world, and the other side was the hot sale. The iPhone11 series staged ice and fire two days. The industry believes that Apples new entry price reduction strategy effectively enlarges its user base and catches up with the changing tide of a number of old users. Apple is expected to achieve a larger growth in the iPhone 11 series. But in the long run, can the price reduction strategy continue?
6S and 7S series users enter the switching cycle
Guo Mingpi, once hailed as the strongest Apple analyst on the surface in the industry, adjusted his expectations. As deputy director of Tianfeng International Research and Strategy Department, Guo Mingpi often made headlines in the global science and technology media before the launch of new Apple products, because he maintained high accuracy in predicting Apple products. But this time, he revised his forecast for new iPhone shipments by the end of this year, from 65 million to 70 million to 75 million.
The pre-sale of the iPhone 11 series started on September 13. From the current Apple official website and major e-commerce channels, the launch of the iPhone this year is unexpectedly booming.
Some netizens joke that technology is based on shell replacement.
On the domestic mainstream e-commerce platform, the pre-sale of the iPhone 11 series also shows a strong momentum. The official microblog @Jingdong Mobile Phone Communications of Jingdong Mall, released in the afternoon of September 14, showed that the first order was closed within one second of the opening of the pre-sale, and the iPhone 11Pro series was sold out within five minutes. The pre-sale volume of the iPhone 11 series has increased by 480% over last year, and more than 16 million users have paid attention to the series. The most popular color for the iPhone 11Pro is dark green, and black and purple are the most popular among the various color combinations for the iPhone 11.
According to Tianmao data, the sales of the first day of pre-sale of the iPhone 11 increased by 335% compared with that of the iPhone XR. In the week before the pre-sale, searches for terms related to the iPhone increased sharply, with the fastest increase in the number of iPhone 11 searches, an increase of more than 100%, according to Tianmao Small Black Box data. The pre-sale of Skycat Platforms iPhone 11 series has reached more than $100 million in one minute. Among them, the dark green number of the iPhone 11Pro has been emptied, and the official flagship store of Apple Skycat has replenished four times overnight.
Suning told Beijing News that Sunings statistics showed that as of 15:00 on September 16, the total number of reservations (different from pre-sale) for the three new models of the iPhone 11 series had exceeded 3 million. The most popular is the dark-night green version of the iPhone 11Pro (256G), with a single model booking of more than 500,000.
Gome also told the Beijing News that as of 12 noon on September 15, the number of reservations for Gome platforms iPhone 11 had increased by 322% compared with last years number of reservations for the iPhone XR. The highest number of black reservations was for the iPhone 11, followed by purple and green. New color audiences are mainly young users under 30 years old. The iPhone 11Pro is dark green and has become the most popular item.
How long will it take users to get new products behind the popularity of Apple pre-sale? On Sept. 16, Apples official website showed that the deep-sky ash and gold versions of the iPhone 11Pro and Promax are expected to be shipped in 5-7 working days, while the new dark-night green version is expected to be shipped in 2-3 weeks, already after National Day. At noon on September 17, a reporter from Beijing News saw on Apples official website that the delivery date of all color versions of the two models is expected to be 2-3 weeks. In terms of the entry-level version of the iPhone 11, except for the red version 5-7 working days, the other colors basically need 7-10 working days to ship, and the green version needs 2-3 weeks to ship.
Major sales platforms are also escorting sales of the new iPhone in terms of subsidies and logistics support. According to Apples official website, purchasing machines can enjoy 24 interest-free periods, and logistics is distributed by Shunfeng or EMS; while in Jingdong Platform, the maximum allowance is 1000 yuan for replacement of old ones, and logistics is distributed by Jingdong or Jingdong Home; in Tianmaos view, purchasing machines can enjoy 12 interest-free periods, logistics is combined hummingbird, and the first time an hour service of the iPhone is launched. Service. From Sunings point of view, the purchase of aircraft can enjoy 12 stages of interest-free, limited packages can be given, and the maximum additional subsidy of 1000 yuan can be obtained for the replacement of old services, logistics for Suning Logistics Rocket Brothers punctual arrival and offline stores. In Guomeis old-for-new activities, the old machine can be up to 5,000 yuan.
Guo Mingpi told the Beijing News that there were some new developments in the new Apple product sales this year. In previous years, only the new color will be shipped in 2-3 weeks, but this year, some old color models need 2-3 weeks of waiting time. Behind this, the price of the 11 series of the iPhone has been lowered, and the 6, 6S and 7 series of users of the iPhone have entered the switching cycle. In addition, it is worth noting that the high unit price of the iPhone Pro is also more popular than expected in the U.S. market. Guo Mingpi believes that the pre-sale boom will have an opportunity to continue, and the number of orders for the iPhone will decline from November to October in previous years. This year, it is expected that October and November will still be the peak sales of the 11 series of the iPhone, which is also good news for Apple supply chain manufacturers.
Yellow cattle weakness
Adequate stock and lack of room for price increase
Xiaofei, the digital product agent of Zhongguancun Science and Trade Electronic City, told the Beijing News that this years shipment of the iPhone 11 series is much higher than last years because of the lower price of the iPhone 11. However, due to the ample supply, apart from individual models, the price of the iPhone is not strong, and even a phenomenon of breaking (retail price falling below official pricing) has emerged. Xiaofei told Beijing News that the green 256G, 512G and purple 128G versions of the iPhone 11 Promax have not yet been broken.
Xiaofei told Xinjing Daily that his source of goods is the first-level agent in Shenzhen. After the agent gets the goods, he sends them to the second-level agent in Beijing. The first-level agent will update the guided price every ten minutes. Second-level agents have some room for price adjustment, but there are also several larger second-level agents in Beijing. Everyone has a tacit understanding in price. Now the more popular green iPhone 11 Promax is offered at a premium of 600 yuan. Xiaofei pointed out that the current price increase is generally purchased by relatively newly needed customers, such as car dealers, who bundled the popular version of the iPhone with the car for sale as a means of promotion.
New Beijing News reporters in idle fish and other second-hand trading platforms also see that some users who grab the right to buy the popular version of the iPhone choose to put their qualifications on the market, and generally increase the price to 300 yuan. However, the phenomenon of cattle price increase in the era of the 4S and 7S has not appeared this year. In Xiaofeis eight years of experience, the most exaggerated price increase is the bright black version of the iPhone 7 and 7 plus. Due to the surface coating process, the phone is very popular. There are only six in Zhongguancun, and it was once fired to 450,000 yuan. At present, the price of the iPhone 11 series itself is not low, and the supply is relatively sufficient, there is not much room for scalpers to increase the price.
In the media reports, a scalper said: This year, the price of the new iPhone is more appropriate, the stock is sufficient, plus some interest-free activities by stages, so now the pre-sale situation is better, especially the volume of stock, which has a great impact on us.
Multi-Round Price Reduction Solves Apples Urgent Needs
Can the hot pre-sale of the iPhone 11 series translate into long-term sales growth? Wu Yiwen, senior analyst at Strategy Analytics, a market research firm, told Beijing News that the explosion of pre-sales of the iPhone should be viewed with caution, and whether this phenomenon can translate into a steady increase in shipments remains to be seen. Wu stressed that the name of the iPhone has changed this year, and the pace of product launch has also changed.
Wu Yiwen pointed out that the change in the name of the iPhone refers to the fact that the iPhone 11, which inherits the orientation of the entry-level model of the iPhone XR, finally does not need the suffix of SE and XR to make consumers feel cheap version, which to some extent stimulates consumersbuying enthusiasm.
More importantly, Apples pricing has ended its yearly upward trend, and the starting prices of all three new products have declined. The starting prices of three new products, namely, the iPhone 11, the iPhone 11Pro and the iPhone 11 Promax, are 5499 yuan, 8699 yuan and 9599 yuan, respectively. Among them, the entry-level version of the iPhone 11, compared with its predecessor, the iPhone XR, has a starting price drop of up to 1,000 yuan, compared with only $50 in the U.S. market. Apples move to drastically reduce the starting price of the Chinese market has also been interpreted as a sign of sincerity in China, the worlds second-largest market for the iPhone.
However, the Beijing News reporter found that although the starting price of the National Banks iPhone 11 series has declined, it is still higher than that of Bank of America and Bank of Hong Kong. For example, 64Gs iPhone 11 is about 500 yuan more expensive than Bank of America, 64Gs iPhone 11Pro and Promax, and Bank of China is about 1000 yuan more expensive than Bank of Hong Kong.
In fact, the price adjustment of the new generation of the iPhone was not expected. The expensive price of Apples last generation of products has put a lot of pressure on sales. In order to boost sales, Apple experienced four rounds of price cuts in the Chinese market in just four months at the beginning of this year, almost in January. The price reduction strategy has played a role in stimulating sales to a certain extent. Public data show that, taking Marchs price reduction as an example, since the launch of the price reduction at 5 p.m. on March 5, the overall sales of the iPhone in Tianmao have increased by 150% annually since 12 p.m. on March 7.
Many industry insiders believe that the price reduction of the new iPhone is due to Apples many price cuts since the beginning of this year, refusing to luxury in the hope of promoting sales at low prices to boost global market sales, on the other hand, due to the lack of 5G competition pressure. Wu pointed out that Apples pragmatic approach to the price of the iPhone this year is not an exceptional case, but a long-term strategic change, which is very wise. She told Beijing News that the new product of the iPhone this year is not innovative enough, and pragmatic pricing is conducive to its more calm face to competition. Pragmatic pricing will help Apple expand its user base at $5,000, which is good for increasing its existing base of iPhone users. The base of iPhone users is the cornerstone of the growth of Apples services business.
Compared with Apple under Jobs, Tim Cook emphasizes the combination of hardware, software and services, expecting to increase Apples profitability with sales of software and services. At the opening of the conference, he said that the combination of hardware, software and services would enable people to accomplish unexpected things.
After the launch of the iPhone 11 series, Apples share price rose for two consecutive days, and its market value broke through the trillion dollar mark again. However, Apples share price has fallen for two consecutive trading days, as Goldman Sachs sharply cut its price target for Apples stock from $187 to $165. Goldman Sachs points out that Apples trial accounting approach to Apple TV + will have a significant negative impact on Apples profits. As of September 18, Beijing time, Apples U.S. stock closed at $220.70, with a total market value of $997.383 billion.
Guo Mingpi said in his analysis that the demand for the iPhone 11 series in China is stronger than that in the US market. The reason is that for the users of the 6/6s and 7 series of the iPhone, the iPhone 11 is a good choice for upgrading, and the starting price of the entry-level model 5499 yuan is about 1-1.3 times the average monthly salary of Chinese consumers, which is close to the price of sweet spot. By contrast, last years entry-level iPhone XR started at about 1.5-1.7 times the average monthly salary.
Absence of 5G has limited impact on sales but harms image
Before the pre-sale, more users thought it was not worth buying because of the lack of refreshing upgrades for the new iPhone. In an online poll involving more than 300,000 people, less than a fifth of the participants said they would buy, and nearly half of the participants explicitly said they would not buy.
In Chinas social network, the iPhone11 series is much more than the bathing bully type of camera that has been tuckled and tinkering innovation. The most important point is probably the absence of 5G. Among the tens of thousands of comments on a related news item, one comment that has been praised nearly 30,000 times said: Its too inappropriate for such an expensive mobile phone to be replaced next year without 5G. Several users of Apple and Android mobile phones told reporters in the Beijing News that although they are not in a hurry to start 5G mobile phones at the moment, the next one will basically want to use 5G mobile phones.
The laying of 5G infrastructure in China is in full swing. Yang Jie, chairman of China Mobile, announced in June this year that 5G network will be opened in all prefecture-level cities in China by 2020.
According to IDC, a market research firm, Android will account for 87.4% of the 5G smartphone market in 2023, while Apples iOS will account for only 12.6%.
However, although the absence of the iPhone 11 series on 5G will have an impact on sales, some analysts point out that the impact is now exaggerated. Wu Yiwen, for example, believes that the lack of 5G will have an impact, and that the switching needs of some iPhone users will be delayed until next year. But the impact of 5G is also limited. Globally, the deployment of 5G network is still in the early stage, and 5G mobile phone has not yet formed the just need of consumers.
Xiaofei told Beijing News that users who like to taste fresh will still choose 5G mobile phones, but most customers are more rational and will choose to wait a little longer.
Liu Yuanju, a researcher at the Shanghai Institute of Finance and Law, also pointed out that objectively speaking, 5Gs popularity is still early, the demand of consumers is not large, and 5G has not yet been used as a killer. Therefore, Apples failure to launch 5GiPhone 11 will not cause too much trouble for consumers. However, at the brand image level, this undoubtedly further strengthens the impression that Apple is lagging behind.
From leading to following, iOS ecologically becomes a moat
According to foreign media reports, the first global orders for the 11 series of iPhones are expected to be around 8 million units this year, down at least 10% from the 2018 models last year. Meanwhile, Apple retained sales of the iPhone 8 and the XR, but further lowered prices to $449 and $599, respectively.
In terms of global market share, IDC data show that in the second quarter of this year, Samsung mobile phones were the first to ship, with a market share of 22.7%, 75.5 million; Huawei mobile phone shipments were 58.7 million, ranked second, with a market share of 17.6%; Apple mobile phone shipments were 33.8 million, ranked third, with a market share of 10.1%.
According to third-party Quest Mobile, 46% of Apples switching users opted to switch to Android in June 2019. Of these users, more than 27% chose Huaweis high-end model P30 series and Mate 20 series.
According to a report released by Counterpoint, a market research agency, Huaweis market share of high-end smartphones in the price range of $600-800 (4100-5500 yuan) has reached 48%, which is much higher than Apples 37%. In markets above $800, Huaweis share rose from 2% in the first quarter of 2018 to 14% in the first quarter of 2019.
For the weakness of Apples mobile phone business, some analysts believe that it is mainly due to the prolonged switching cycle of users and the impact of Chinas mobile phone manufacturers, including product innovation and 5G product layout has taken the lead in Apple. Canalys predicts that 1.9 billion 5G handsets will be shipped in the next five years, and more than 4G handsets will be shipped in 2023.
At this conference, Apple, which has always ignored other friends, unprecedentedly compared its processor performance with the competitors of Samsung, Huawei and Google, which also made many netizens feel Apple panicked.
Guo Mingpi believes that the competition between Samsung and Huawei in the international market is much more intense than that between Apple and them, because both use Android, and the threshold for users to switch from one brand to another is very low. What Apple sells is not only an iPhone, but also Apples complete ecosystem and experience behind it. The $5,500 iPhone 11 has only two cameras, but it can still compete with Android flagship models equipped with three or four cameras and many other advanced technologies, reflecting the strong bargaining power of the Apple brand. This bargaining power comes from both the brand loyalty of its users and the strong appeal of Apples ecosystem.
Wu Yiwen told Beijing News that Apples brand is still appealing. But on the hardware level, in the application of new technology, Apples brand image has changed from innovator to follower. At the same time, its complete, rich and closed iOS ecosystem has become a powerful moat for the iPhone. Xiaofei also believes that Apples basic user disk is still relatively solid. Once users get used to the iOS ecosystem and have several supporting Apple devices, the replacement of Android phones will face higher costs. So the shift from Apple to Android is not very common.
Wu Yiwen is deeply impressed by the users enthusiasm for the dark night green of the iPhone 11 series, and how strong consumerspursuit of new things is. Although price reduction and renaming can improve sales for a while, the long-term competition still depends on the real user experience. Yu Fenghui, a financial commentator, pointed out that if Apple wants to regain its glory, it needs to put down its status of being above the top, conquer consumers in innovation and get close to consumers in price, which is the best choice.
Beijing News reporter promised Chen Weicheng editor Xu Chao to proofread Fan Jinchun
Source: Wang Fengzhi _NT2541, responsible editor of Beijing Newspaper