Neil Hughes
The survey results revealed this week by Morgan Stanley and AlphaWise show 3G handsets and smartphones are taking off in China in 2011. Nearly 90 percent of respondents said they have "high interest" in buying a 3G handset or smartphone as their next phone.
Of those who plan to buy a smartphone, the most popular option is Apple's iPhone. A total of 30 percent of respondents with 3G handset purchase intentions said they will most likely purchase an iPhone, followed by 25 percent for a Nokia device, 7 percent for HTC, 5 percent for Samsung, and 4 percent for Motorola.
The iPhone would be an even more popular option, the survey found, if Apple were to lower the price of its smartphone. With a cheaper option, Apple would command a 53 percent share of 3G phone buyers, leaving Nokia with 20 percent and Research in Motion's BlackBery with 5 percent.
Apple did fall behind Nokia when respondents were asked to share what they believe to be the "leading smartphone brands." Of those surveyed, 78 percent indicated Nokia is a market leader, while Apple was cited by 72 percent.
Both Nokia and Apple are well ahead of their competitors in terms of Chinese consumers' perception of "leading" brands. Motorola and Samsung trailed well behind, being named as top brands by 44 percent of respondents each, while RIM's BlackBerry accounted for 40 percent.
The survey polled 2,029 Chinese mobile phone owners during February and March of 2011. The margin of error for the total sample is plus or minus 1.7 percent.
Morgan Stanley has long maintained that the price of the iPhone has been the greatest barrier to adoption in China. The results of the latest survey lend support for this conclusion, as Apple's share of likely shares increased significantly when cost was not a part of the equation.
There has been evidence that Apple is looking to reduce the cost of the iPhone, with rumors of a smaller handset that would be sold contract-free surfacing earlier this year from both The Wall Street Journal and Bloomberg. Those reports of a new, smaller iPhone were disputed by The New York Times, though it was said that Apple continues to look for ways to reduce the cost of its handset.
Bon Adamson
Wesley Hilliard
Christine McKee
Malcolm Owen
AppleInsider Staff
Amber Neely
40 Comments
I wonder then, if a cheap iPhone 3Gs should be offered at the same time as offering the more expensive iPhone 4.
It's interesting to note Windows 7 phones don't seem to be making much impact there!
So, more people would buy an iPhone if it were cheaper? Hm, it must be Obvious Day today.
But in all seriousness, when they asked that question, was the Nokia option also stated to be cheaper? It's not really a good question if a theoretically cheaper iPhone was pitted against a regularly priced Nokia (and other brands) rather than an equivalently theoretically lower priced Nokia.
And more importantly, would Apple make a cheaper iPhone for the Chinese market only and not make it available elsewhere? Sort of like some companies offer their prodcuts for a reduced price in China because if they don't they know it will just get pirated anyway (I think MS does this).
I'm not sure what to make of a report like this. My monthly subscription fee costs me around $1K a year, or $2K over the lifetime of the plan. The phone is $600, or $200 subsidized.
So, given that the majority of the cost of owning a smartphone is in the data plan, I'm not sure how much the cost of the phone is going to change overall appetite.
Are the plans cheaper in China, such that the phone truly is the overriding financial burden?
Release an iPhone for Sprint and I'll be happy, whatever the cost. And do it before the end of July!
... The iPhone would be an even more popular option, the survey found, if Apple were to lower the price of its smartphone. ...
Breaking news! People would buy more iPhones if they were cheaper. Shocker!