No crowds as Apple’s iPhone 11 hits stores in China

Apple has been losing ground to competitors with cheaper and feature-packed handsets in recent years. (Reuters)
Updated 20 September 2019

No crowds as Apple’s iPhone 11 hits stores in China

  • The sales performance of the US tech giant’s latest line-up is being closely watched in the world’s largest smartphone market
  • Apple has been losing ground to competitors with cheaper and feature-packed handsets in recent years

BEIJING/SHANGHAI: Apple’s latest iPhone 11 range hit stores in China on Friday, with short queues of die-hard fans contrasting with the hundreds who camped out ahead of some previous launches.
The sales performance of the US tech giant’s latest line-up is being closely watched in the world’s largest smartphone market, where Apple has been losing ground to competitors with cheaper and feature-packed handsets in recent years.
The queues at the Shanghai and Beijing stores, which combined added up to few dozen customers, were in sharp contrast to previous years, when hundreds used to wait for hours outside Apple’s shops to be the first to grab its latest offerings.
But much of the fanfare in China has moved online where the pre-sales for iPhone 11, priced between $699 and $1,099, started last week.
Analysts said they had gotten off to a better start than the last cycle a year ago. Chinese e-commerce site JD.com said day one pre-sales for the iPhone 11 series were up 480 percent versus comparable sales for the iPhone XR last year.
Among customers that took to a store in Beijing on Friday to make a purchase in person was a programmer who only gave his surname as Liu, who said he had a model from every Apple series since the 3G range.
He said he was particularly attracted to the more expensive iPhone 11 Pro, which has three cameras on the back. “When it comes to taking photos, it’s better for night shots and the image is clearer,” he told Reuters.
Other customers, however, said that they were concerned that the range was not enabled for fifth-generation networks, putting them behind 5G models already released by China’s Huawei Technologies and smaller rival Vivo, and expressed hopes that Apple could make it happen for its next line-up.
“I think by the end of next year, especially in big cities like Beijing, 5G will be commonplace,” said civil servant Liu Liu. “If they don’t research this then they’ll lag way behind.”
The in-store launch of the iPhone 11 in China came a day after Chinese smartphone maker Huawei unveiled new smartphones which it said were more compact, with more sensitive cameras and wraparound screens more vivid than those of the latest iPhone, though it played down concerns about the lack of access to Google’s popular apps.
Huawei has experienced a surge in support from Chinese consumers after the brand was caught up in a trade war between the United States and China, which has in turn eaten into Apple’s market share in the country.


Huawei in early talks with US firms to license 5G platform: executive

Updated 19 October 2019

Huawei in early talks with US firms to license 5G platform: executive

  • Currently there are no US 5G providers and European rivals Ericsson and Nokia are generally more expensive
  • Huawei has spent billions to develop its 5G technology since 2009

WASHINGTON: Blacklisted Chinese telecoms equipment giant Huawei is in early-stage talks with some US telecoms companies about licensing its 5G network technology to them, a Huawei executive told Reuters on Friday.
Vincent Pang, senior vice president and board director at the company said some firms had expressed interest in both a long-term deal or a one-off transfer, declining to name or quantify the companies.
“There are some companies talking to us, but it would take a long journey to really finalize everything,” Pang explained on a visit to Washington this week. “They have shown interest,” he added, saying conversations are only a couple of weeks old and not at a detailed level yet.
The US government, fearing Huawei equipment could be used to spy on customers, has led a campaign to convince allies to bar it from their 5G networks. Huawei has repeatedly denied the claim.
Currently there are no US 5G providers and European rivals Ericsson and Nokia are generally more expensive.
In May, Huawei, the world’s largest telecoms equipment provider, was placed on a US blacklist over national security concerns, banning it from buying American-made parts without a special license.
Washington also has brought criminal charges against the company, alleging bank fraud, violations of US sanctions against Iran, and theft of trade secrets, which Huawei denies.
Rules that were due out from the Commerce Department earlier this month are expected to effectively ban the company from the US telecoms supply chain.
The idea of a one-off fee in exchange for access to Huawei’s 5G patents, licenses, code and know-how was first floated by CEO and founder Ren Zhengfei in interviews with the New York Times and the Economist last month. But it was not previously clear whether there was any interest from US companies.
In an interview with Reuters last month, a State Department official expressed skepticism of Ren’s offer.
“It’s just not realistic that carriers would take on this equipment and then manage all of the software and hardware themselves,” the person said. “If there are software bugs that are built in to the initial software, there would be no way to necessarily tell that those are there and they could be activated at any point, even if the software code is turned over to the mobile operators,” the official added.
For his part, Pang declined to predict whether any deal might be signed. However, he warned that the research and development investment required by continuously improving the platform after a single-transfer from Huawei would be very costly for the companies.
Huawei has spent billions to develop its 5G technology since 2009.