Home / Technology / Apple upbeat on iPhone SE direct though some Asian retailers, suppliers reduction cheery

Apple upbeat on iPhone SE direct though some Asian retailers, suppliers reduction cheery

* China/HK retailers yield churned views of direct for
iPhone SE

* Parts suppliers contend they see soothing demand

* Huawei serve gains tellurian marketplace share

By Yimou Lee

HONG KONG, Apr 27 After announcing its
first-ever dump in iPhone sales on Tuesday, Apple Inc
sought to encourage investors by observant a latest and cheapest
model was in clever direct after being launched in late March.
Some retailers and suppliers in Asia aren’t so sure.

In a Reuters consult of 10 retailers in Hong Kong, Beijing,
Shanghai and Shenzhen, 7 – including 4 Apple Stores –
reported plain early demand, though 3 third-party retailers
said sales were weak. Two suppliers of components for Apple
phones, including a new iPhone SE, pronounced they were observant lower

“I’ve been traffic with iPhones for 5 to 6 years now.
This stream entertain for Apple feels weak,” pronounced an executive at
a Taiwan-based association whose components are used in iPhones
including a SE model, that markets for $399. “Our current
shipment conditions for Apple is not like a final dual years.
There are some-more iPhone models, though a sum volume of iPhones is

Such a churned opinion from Greater China, a many important
market after a United States and generator of a entertain of the
company’s revenue, could be a vital means of regard for Apple.

The company’s income from a region, that includes Hong
Kong and Taiwan, forsaken 26 percent in a Mar quarter, making
it a weakest segment in a world.

Apple did not respond to requests for criticism on a Reuters


“iPhone is still renouned though sales have forsaken because…
there’s no new indication and a SE is identical to 5C. So it doesn’t
sell well,” pronounced Zhu You Peng, a salesman during Apple product
reseller Xiongyu in Shenzhen. The 5C was Apple’s final try to
produce a cheaper phone, behind in 2013.

Zhu pronounced it sole around 300 iPhones per month final year but
the series has forsaken to around 100-200 this year.

That perspective contrasts with upbeat comments about a phone
from Apple’s Chief Financial Officer Luca Maestri on Tuesday.

“The conditions right now around a universe is that we are
supply-constrained,” he told Reuters, referring to a iPhone
SE. “The direct has been very, really strong.”

The iPhone SEs are sole out in Apple’s possess stores in
mainland China and business have to wait about 3 weeks to
get a product delivered by Apple, according to Apple’s
websites. The distance of a strange reserve to a stores is

Apple, whose shares forsaken about 8 percent after it
reported a unsatisfactory first-quarter formula on Tuesday, is
under vigour to uncover that a decrease in iPhone sales
represents usually a hiccup, rather than a permanent change for the
product that fueled a duration rise.

It isn’t a usually plea confronting a U.S. technology
giant. Its mobile party services were blocked online in
China progressing this month usually during a time when it wants to grow
services business as intensity source of income against
tapering iPhone sales. The New York Times reported that a state
regulator had demanded Apple hindrance a services.

The new phone was seen as an critical offsetting influence
in successive durations until Apple launches a iPhone 7 – widely
expected around September. The reduce cost indicate was partial of a
strategy to contest opposite Asian rivals in rising markets
such as China.

At a iPhone SE product launch in March, Apple vice
president of iPhone Product Marketing Greg Joswiak singled out
China as a aim market, observant four-inch displays like that on
the iPhone SE were still renouned with first-time smartphone
buyers. Apple’s mainstream iPhone 6 and iPhone 6 Plus have
4.7-inch and 5.5-inch screens.


Another retailer pronounced iPhone orders will be reduce in the
second entertain and second half of this year. It also provides a
component for a SE model.

“Our patron is aiming for a aloft target, though we are more
conservative on that,” a chairman said, referring to Apple.

That adds to regard that Apple might serve remove movement in
China, where negligence mercantile expansion might prompt some-more consumers
to snap adult cheaper phones.

“Local brands are holding adult some-more sales, generally among low
income people who acquire reduction than 3,000 yuan a month. OPPO, Vivo
phones that cost around 1,000-2,000 yuan sells a best among
them,” pronounced Zhu during Xiongyu.

Aided by clever marketplace share benefit in China, Chinese
smartphone vendors shipped some-more smartphones globally than Apple
and Samsung Electronics Co total had granted for
the initial time in a initial quarter, according to investigate firm

Underscoring a surging expansion for Chinese vendors, Huawei
Technologies Co Ltd, third-largest after Samsung and
Apple, reported progressing this month a 62 percent expansion in global
smartphone shipments in a initial quarter.

“Consumers who wish to uncover they are abounding enough, they will
buy an iPhone… those who wish to use something different, they
will select Samsung,” Joonsuh Kim, arch pattern officer of
Huawei’s consumer business group, told Reuters, referring to
consumers in China.

“But these days consumers are not that aged fashioned. They
are removing most smarter, and this is because we have most chance,”
said a former Samsung mobile pattern director.

(Additional stating by J.R. Wu in TAIPEI, Clare Jim and Kevin
Dai in HONG KONG, Paul Carsten in BEIJING and Aradhana Aravindan
in SINGAPORE; Writing by Miyoung Kim; Editing by Martin Howell)

Article source: http://www.reuters.com/article/apple-asia-idUSL3N17P2VB