Apple sees strong demand for its iPhone 12 flagship in one of its biggest global markets China. Pre-orders for iPhone 12 have already crossed 150,000 units in three days of launch. Analysts say China alone with contribute 35-40% of the iPhone 12 sales.
The latest industry data shows that the demand for Apple Inc‘s (NASDAQ: AAPL) latest flagship smartphones – iPhone 12 and iPhone 12 Pro – is significantly higher. Last week on October 16, Apple started the pre-order for its new iPhone 12 5G lineup in China.
As per the latest data accessed by CNBC from the Chinese e-commerce site and authorized Apple seller Fenquile, there are more than 150,000 pre-orders for iPhone 12 already registered. Besides, Fenquile is also securing pre-orders for other variants like the iPhone 12 mini and the Pro Max. However, these handsets won’t be available in China until November.
The iPhone 12 standard model remains the top choice among Chinese consumers grabbing 43% of the total sales. The iPhone 12 Pro comes second with 28%, followed by iPhone 12 Pro Max at just under 19%. On the other hand, the iPhone 12 Mini variant has only 10% of the pre-order bookings. China has been a smartphone consumer market that prefers big-screen handset at a majority.
Popular analyst at TF International Securities Ming-Chi Kuo has already predicted the higher demand for iPhone 12. Last week, Kuo also said that Apple sold over 2 million iPhone 12 handset in the first 24 hours of launch. This is more than twice the iPhone 11 initial 24-hour sales of 800,000. Known for his accurate prediction, Kuo added that China alone will contribute 35-40% of the iPhone 12 sales.
China is one of Apple’s biggest markets in the world. Even during the peak of the Coronavirus lockdown in May 2020, China became the savior for Apple’s overall sales. The Asian economic giant had a huge demand for the affordable iPhone 12 2020 version.
iPhone 12 Raising the Bar for Apple
Many analysts had earlier said that the iPhone 12 will be a game-changer for the Cupertino-based tech giant. The complete design overhaul and the 5G technology introduction will be the USPs for the Apple flagship. Well, so far the numbers are in favor of Apple.
On the other hand, analysts have another interesting reason behind higher sales predictions for iPhone 12. Data shows that the number of previous iPhone models waiting for an upgrade has reached the highest in the last few years. This could further push sales of the iPhone 12 handsets as Apple enthusiasts will likely upgrade to the latest variant.
Coming back to China, the Fenquile data shows that the 64GB blue colored variant of the iPhone 12 makes up 20% of its pre-orders. Similarly, the 128GB Pacific Blue variant for iPhone 12 Pro accounts for 11% of the total orders. Speaking to CNBC, Will Wong, research manager at IDC said:
“Consumers are looking for the best deal now, even before the pandemic. And both the iPhone 12 and 12 Pro models could provide them favorable prices and screen size experience. The iPhone 12 allows consumers to get the first 5G iPhone with more acceptable prices and specs, while iPhone 12 Pro could provide the ‘Pro’ experience to consumers with more affordable prices too.”
Surprisingly, post the iPhone 12 launch, the AAPL stock has been going south. The AAPL stock has corrected nearly 5% since October 13. However, it still remains one of the top performers on Wall Street with over 50% year-to-date.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
