Rumors say that Apple has been able to struck a deal with China’s largest telecom provider China Mobile to sell iPhone, cheaper than elsewhere in the world. Marketing guru Tom Doctoroff explains in NPR why selling the iPhone cheap in China is a bad idea.
The one thing Apple has going for it in China is cachet. And that’s why Tom Doctoroff, Asia Pacific CEO of ad agency JWT thinks offering an inexpensive iPhone to the Chinese is a very bad idea.
“One of the golden rules of marketing in China is that anything displayed in public can command a huge price premium,” says Doctoroff. “And the reason for that is status is a primary driver here, much, much more so than in the West. So when you offer an inexpensive iPhone, it immediately signals that this isn’t so elite anymore.”
Buzz for the iPhone has been wearing off here. A report from global analyst Canalys shows that in the last quarter, the iPhone fell from fifth to seventh most popular smartphone in China. It was overtaken by the Chinese firm Xiaomi, which just released a new affordable phone that’s generating a lot of hype.
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