iPhone 6 Plus Sales Booming in China

By Nathan Eddy  |  Posted 2015-01-26 Print this article Print
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In AppLovin's last report, the U.S. had a 80/20 iPhone 6 to iPhone 6 Plus ratio, while China was at 65/35 in favor of the iPhone 6.

Holiday sales and increased availability of the iPhone 6 Plus affected Apple's market share in two of its biggest markets—the United States and particularly in China, where the iPhone 6 Plus is booming—and all indications are that demand for this device is outstripped by market demand by a wide margin, according to a report from AppLovin.

The report indicated relative market share of the iPhone 6 Plus is important, particularly in China, as it seems sales of the device, which reportedly brings Apple 61 percent higher profit margins than the iPhone 6, could give a considerable boost to Apple's next reported earnings.

"Apple's strategy seems to be bearing fruit both domestically and in foreign markets," Katie Jansen, vice president of corporate marketing at AppLovin, told eWEEK. "There is a huge market for affordable phones, and [there are] many great devices built by other companies to address it. But Apple has proven there is another way to be successful."

In AppLovin's last report, the United States had an 80/20 iPhone 6 to iPhone 6 Plus ratio, while China was at 65/35 in favor of the iPhone 6.

Jansen noted that in any emerging market with a thriving middle class—certainly China fits this bill—there seems to be a place for high-end devices like the iPhone and other premium electronics products.

As more iPhone 6 Pluses became available for purchase in December, China's iPhone 6-to-6 Plus ratio moved to 60/40, while the U.S. market also shifted 5 points in favor of the 6 Plus to 75/25.

"The fact that China is quickly becoming the top consumer for iPhones is not something that caught Apple flat-footed," Jansen said. "They saw this coming years ago and designed devices—and crucially their native software experiences—with the Chinese market in mind."

Financial firm UBS recently estimated that for the first time ever, iPhone sales in the December quarter in China outstripped those in the United States.

"All early indications are that Apple has another smash hit on its hands," she said. "The iPhone 6 Pluses were supply-constrained at launch, and as supply starts to meet demand, we see the gap between the 6 and 6 Plus narrowing."

The report also noted that because the original devices that sold in the first month and a half of the availability at an 80/20 or 65/35 pace are still active, the new devices added have to dilute the original ratios.

For example, the ratios of new iPhone 6 models sold now in China could be approaching 55/45 (6/6 Plus), but the overall ratio is less influenced because of the original iPhones (sold at a 65/35) still in use.



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