HANGZHOU, China/SEOUL (Reuters) – Apple Inc’s (AAPL.O) new, lower priced iPhone that comes with a quicker processor however lacks 5G know-how disillusioned Asia, the place cheaper and feature-packed handsets from rivals are already accessible.

FILE PHOTO: CEO Tim Cook presents the brand new iPhone 11 at an Apple occasion at their headquarters in Cupertino, California, U.S. September 10, 2019. REUTERS/Stephen Lam/File Photo

The iPhone 11, launched on Tuesday for $50 lower than final yr’s base XR mannequin, was met with a limp response from social media customers in Asian markets which might be dominated by Huawei Technologies and Samsung Electronics (005930.KS).

Lowering the entry value level, a uncommon transfer from Apple, was probably an effort to draw consumers in China, the place Apple has ceded floor to Huawei attributable to a surge in assist from patriotic Chinese customers after the Chinese model was caught in the U.S.-China commerce standoff, stated analysts.

Despite the discount, the iPhone 11, and even the higher-end fashions with extra digital camera lenses, are set to return up brief in Asia.

“Apple’s new phones were no surprise at all. Only tangible change is having an additional camera on their premium model,” stated Park Sung-soon, an analyst at Seoul-based Cape Investment & Securities.

“However, it is noticeable that Apple has made a price cut for the newest iPhone for about $50, which is a very rare move for the company. The move might be aiming to manage and reduce potential risks drawn by the U.S.-China trade war.”

The iPhone 11 can have two again cameras and is priced beginning at $699, down from $749 for the XR final yr. On Tuesday, Apple additionally dropped the value of the XR by $150.

The dearer iPhone 11 Pro can have three cameras on the again and begins at $999. The greater display screen iPhone 11 Pro Max begins at $1,099.

(Graphic: Apple unveils new iPhones – here)

“Since we still have to wait a year for 5G, why not just buy Huawei on Monday,” stated one consumer on China’s Twitter-like service Weibo. Huawei and smaller rival Vivo have already launched 5G fashions in China, and Samsung in South Korea.

A meme doing the rounds on Chinese social media featured Apple Chief Executive Tim Cook bragging in regards to the new options and Richard Yu, CEO of Huawei’s shopper enterprise group, shutting him down by stating that Huawei has had these options for years.

“(Apple) just added one more camera lens and called it a new feature, meanwhile it is still too pricey,” stated a consumer on South Korea’s Naver.com net portal.

One of the primary draws of the brand new launch for U.S. consumers – a $5 per 30 days Netflix-like streaming service – is not going to be accessible in China.

FEATURES VS PRICE

Counterpoint analyst Neil Shah stated the entry value, whereas lowered by Apple, stays excessive in comparison with native rivals. Combined with the dearth of 5G, that made the brand new iPhones “less attractive and future-proof” for Chinese customers, Shah stated, forecasting that Apple will promote 30-35 million iPhones in China this yr, down from 63 million telephones in 2015.

Apple’s share of the China market in the June quarter fell to five.eight% from 6.four% in the yr precedent days, in keeping with analysis agency Canalys. It has additionally misplaced floor in South Korea, with market share dropping to 11.2% from 12.5%, in keeping with analysis agency Strategy Analytics.

In India, a market that Apple has stated is essential for progress, response to the brand new telephones was muted as effectively.

“I don’t believe customers will buy more iPhones now because the new models sport more cameras, it will not move the needle much for them,” stated Navkendar Singh, analysis director at IDC India.

Customers in India who care extra about proudly owning Apple-branded telephones over the newest mannequin are actually probably to purchase the discounted XR as a substitute, Singh stated.

FILE PHOTO: Kaiann Drance presents the brand new iPhone 11 at an Apple occasion at their headquarters in Cupertino, California, U.S. September 10, 2019. REUTERS/Stephen Lam/File Photo

Still, some analysts stated that Apple’s determination to lower the entry value for the brand new iPhone, one of the crucial mentioned matters on Weibo on Wednesday, was a constructive signal.

“We think the lower iPhone 11 price point and trade-in program will help promote upgrades, specifically in China, while the Apple Arcade and TV+ offerings will help accelerate services growth,” CFRA analyst Angelo Zino stated in a analysis observe.

The new telephones can be accessible to order on Friday and begin transport Sept. 20.

Reporting by Josh Horwitz in Hangzhou, Heekyong Yang in Seoul, Brenda Goh in Shanghai and Sankalp Phartiyal in Mumbai; Writing by Sayantani Ghosh; Editing by Jane Wardell and Muralikumar Anantharaman

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