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iPhone 6 and iPhone 6 Plus raise the average price of smartphones in China

Tim Cook was right, China is becoming one of the main markets for Apple . The best example of this is to talk about results and specifically sales results of the iPhone 6 and iPhone 6 Plus. Both handsets have become the most sold phones in the country , leading the top in recent quarters. This also shows that Chinese citizens are willing to pay high prices if the products meet their needs and desires. All of this undoubtedly justifies the fact that Apple is designing products especially for Chinese consumers (an example might be the color gold that is gradually flooding Apple’s catalog).

The effect that the success of the iPhone is having on the smartphone market in China is that the average sales price has risen from $192 in Q3 2014 to $263 in Q1 2015 . This represents a 37% increase in sales price and is a direct result of the popularity of iPhone 6 and iPhone 6 Plus in the country.

iPhone 6 and iPhone 6 Plus raise the average price of smartphones in China
iPhone 6 and iPhone 6 Plus raise the average price of smartphones in China

According to Bryan Ma, IDC analyst:

Considering these figures and the statements of the IDC analyst, it seems clear that Apple made a very smart move by increasing the size of the screens. It is clear that Chinese consumers are willing to pay a lot of money for what they perceive as superior devices and IDC’s data shows this.

While Apple is pushing the average price up and they’re in the top of the sales rankings, companies like Lenovo, Huawei or Xiaomi are still competing with each other on price. Right strategy or wrong?