The diminishing demand of the iPhone 5C can affect the deal between China Mobile and Apple
An analyst from KGI Securities, named Ming-Chi Kuo, said that both Apple and China Mobile are in the final segment of signing the much anticipated contract, but the sluggish sales of the iPhone 5C may force the tech giant to alter the terms of the partnership.
According to CNET, Kuo said, “We believe that weak sales of iPhone 5C may trigger a re-negotiation of the Apple-China Mobile partnership.” He added, “However, the indications are that the deal is nearing an end. While recent market speculation calls for the deal to boost 1Q14 iPhone shipments to 45-50mn units, we think this is overly optimistic.”
According to Apple Balla, a number of analysts inform that the cheaper model of iPhone has not been able to attract the subscribers of the China Mobile network, as they have become really excited purchasing the flagship model of iPhone, the 5S version. As a result, the Cupertino company may have to reset the terms of the contract with a view to induce the China Mobile to vend its devices.
It will be really interesting to see if Apple has to really alter the terms, and how it helps the tech giant to conquer the huge Chinese market.