Wall Street Journal said some Chinese consumers consider Apple to now be copying Chinese smartphones – features such as dual cameras and handsets without headphone jacks were all firstly seen on Chinese smartphones. On balance the iPhone 7 and 7 Plus seemed to bode well for Apple’s outlook.
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Apple is not giving up on China even though iPhone sales in the world’s most populous economy have lost steam over the past year: China remains in the first batch of countries to release two iPhone 7 flagships, and has been added to the “iPhone Upgrade Program” along with the U.S. and United Kingdom, which aims to encourage consumers to change for a new iPhone handset every year.
Apple is “now at a point where we know before taking the first customer preorder that we will sell out of iPhone 7”, the company said Thursday in a statement. Prices for the upgraded Apple Watch Series 2, which includes a Global Positioning System chip, better waterproofing, and a new display, start at $369.
Indeed, although initial orders for the iPhone 6s and 6s Plus exceeded those for the prior year, that momentum appears not to have been sustained.
Investors have grown accustomed to receiving early sales figures, and Apple’s decision to hold back seems significant, said analyst John Jackson of IDC.
The 4.7-inch iPhone 7 is available in 32, 128, and 256GB capacities in the United States for $649, $749, and $849, respectively.
Apple, which shipped its first watch in April 2015, aims to use a blockbuster wearable product to tackle the slowing iPhone sales, which contribute more than 60 percent of the California-based company’s annual revenue. Apple has provided no indication that it will stop announcing iPhone sales numbers with its quarterly earnings report.
The iPhone 7 delivers several improvements in function but lacks the kind of breakout feature that defined some earlier models.
“I think the iPhone 7, just from a replacement basis, will be a successful launch”, he said. Pricing, which includes AppleCare+, starts at $32.41 for the iPhone 7 and $37.41 for the iPhone 7 Plus.
Despite being a clear leader in the new smartwatch market, the Apple Watch saw its shipments between April and June fall to 1.6 million devices from 3.6 million in the same period previous year, mostly due to the lack of updated hardware, said International Data Corporation. Both carriers require customers to stick around for two years to make it truly free.
The number of people using an iPhone has doubled over the past two years, and when these new users will upgrade is still an open question, Mr. Sacconaghi said.
“We don’t really have established upgrade data”, he said.
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Thomas Gryta contributed to this article.
