Chinese buyers weigh prestige against price as Apple’s first folding phone launches

The iPhone Duo, Apple’s initial folding phone, has received a cool reception in China, with customers placing more emphasis on cost than reputation.

One user on WeChat, the social media platform, told CNBC they were waiting on the next generation. “I won’t buy it this year. I’ll buy the second-generation foldable next year,” they said, according to CNBC’s translation. The Duo is priced at 15,999 yuan ($2,230) in China.

One person summed up the contrast plainly in a WeChat video review, which CNBC translated. That person wrote: “U.S. consumers earn US$3,000 to US$4,000 a month and buy it for US$1,999. We earn 3,000 to 4,000 yuan and spend 10,000 yuan on it,”.

The Price Gap

Some Chinese rivals sit below Apple on price, and one WeChat commenter wondered if the company could hold its own against them. “Cheaper than Huawei. Can you take it?” they wrote.

The issue carries weight because China’s phone market is already full of players. Companies including Huawei, Xiaomi, Honor, Oppo and Vivo all offer folding devices, spanning book-style, flip-phone and trifold shapes.

The Market Picture

China is Apple’s third-biggest market, generating around 17% of total revenue. It is also one of the world’s most competitive foldable-phone markets.

Counterpoint reports that Huawei topped China’s smartphone market in the first and second quarters, with Apple placing second, and Vivo and Oppo rounding out the top four.

Counterpoint’s numbers show Samsung has once again taken the top spot ahead of Apple for smartphone shipments on a global basis during the second quarter, with Xiaomi sitting in third place. The research firm also expects Samsung to take the lead in foldable devices, where it holds a significant advantage of 32% over Apple and Huawei, which sit at 25% and 24% respectively.

The Launch Schedule

The SIM Card Problem

Beyond price, users on Chinese social media pointed to another issue: the Duo has no physical SIM-card slot. That means mainland users may need to travel to a carrier store to complete ID verification before they can activate an eSIM.

The Race Ahead

Shares in Apple rose by over 3% following the launch event, yet the real test will be whether Chinese consumers regard the Duo as a coveted status symbol or simply a luxury they cannot afford.

The next few months will tell the story.

1. The Duo launches with a price that some Chinese buyers consider steep.
2. Rivals like Huawei, Xiaomi, Honor, Oppo and Vivo already dominate the Chinese foldable market.
3. Apple holds only a fraction of Samsung’s foldable market share globally.
4. The Duo’s lack of a physical SIM-card slot adds another hurdle for Chinese users.

Source: cnbc.com

Apple · China · foldable phones · iPhone Duo · smartphone market