Apple recently released its first 5G smartphone series which is long overdue. Although Apple is at least one year behind, IDC expects the company to claim a significant part of the Chinese 5G smartphone market. According to IDC, there are two core factors that ensure that China continues to lead the global 5G market. These factors are
- China’s 5G terminal pricing strategy is more aggressive
- China’s coverage of mainstream price segment user groups is greater and wider.
IDC data shows that the average unit price of 5G mobile phones in the international market in Q2 2020 is $837. However, in the Chinese market, this value is only $464. In the market above the $600 price range where the iPhone 12 series is located, Apple and Huawei each account for approximately 44%.
Since 2019, with the rapid penetration of 5G mobile phones in the Chinese market, the proportion of higher-priced mobile phones has continued to grow.
In the first half of 2020, the capacity of the Chinese market in the price segment above $600 is about 23.5 million units. IDC believes that Apple can still stably occupy more than 40% of the market.
iPhone 12 series will help open up the Chinese 5G market – IDC
The iPhone 12 series will cover the price range between $699 to US$1,099. The starting price of the mini version is the same as that of the previous generation 4G models. Not only is the pricing easy to accept, the screen-to-body ratio is higher. It is also more friendly to the grip of users of the iPhone 7 and 8 series. Most of these users will most likely migrate to the iPhone 12 Mini.
IDC believes that based on the current advancing speed of China’s 5G market and the strong appeal of the Apple brand in China, the new iPhone is expected to inject new vitality into the relatively sluggish mobile phone market this year. It also claims that the new iPhone series will help the development of China’s 5G.
IDC predicts that the global 5G mobile phone shipments will be about 240 million units in 2020. Out of this value, the Chinese market will contribute more than 160 million units, accounting for about 67.7%. In the next 5 years, China will continue to occupy about half of the market share.
IDC concluded that the iPhone 12 series will have a resonance driving effect. It will also see to the development of the Chinese 5G industry in terms of terminal equipment and application scenarios.