This year’s sales results (10 million) were without China, Hong Kong, and Taiwan, the company’s third largest market globally. The region is Apple’s fastest-growing major market but the CCTV recently published a report indicating the phone may be a threat to China’s national security. It appears that Chinese regulators have not approved the most recent iPhone yet for sale in the country.
A MOVE INTO LESS AFFLUENT MARKETS
Perhaps the most interesting news comes from the iPhone 5C and a more serious play for a new market. Traditionally the company upgrades each of the iPhone’s once a year. This month, instead of announcing an upgrade for the iPhone 5C, Apple will sell the same phone for a lower cost. This is a strong strategy to increase market share in less affluent markets. By selling the same plastic model for a longer period allows the product cost to drop. The new lower cost? Free with a contract (in the US).