5G will finally get its U.S. closeup withthe expected debut of Apple's next iPhone on October 13. But the blazing speedspromised will not materialize for most people. The device, dubbed the iPhone 12 byanalysts, can tap into 5G, or fifth generation wireless technology, thattheoretically operates as much as 10 to 20 times faster than current 4Gwireless networks. However, current 5G U.S. networks mostlyuse low-band wireless spectrum, or airspace, that is slower than high-bandspectrum, but more reliable over longer distances. It will likely take yearsbefore the massive speed boost phone carriers promise will make augmentedreality and real-time cloud gaming seamless. Several U.S. telecom operators havedeployed networks based on lower spectrum bands, with slightly higher speedsthan 4G. A noticeably faster variant of"mid-band" 5G is also being rolled out, but it is unlikely to reachthree-quarters of Americans until 2025, estimated longtime Apple analyst GeneMunster of venture capitalist firm Loup Ventures. In South Korea and in China, faster 5Gnetworks are more pervasive. But Apple will be competing against local brandsincluding Samsung in South Korea, which is already on its second line of 5Gphones, and China's Huawei, whose sales have surged after the telecom giant wasbanned in the United States. Apple’s iPhone 12 launch drew mixedreactions in mainland China, with fans cheering while others planned to waitfor upcoming devices from Huawei Technologies. iPhone 12 sparks mixed reactions in China Much anticipated Apple's iPhone 12 launchlead to a feverish debate on social media among Chinese consumers on October 14with some applauding the brand for trying to catch-up with the 5G race, andothers complaining about the high price tag, including the fact that theadapter and headphone are sold separately. iPhone's main rival Huawei, whose saleskeeps surging this year, announced that its Mate 40 model will be released nextweek. Netizens commented on WeChat that rollingout of the higher-end 5G devices rescued the 44-year-old company from beingleft behind in technological innovation. Apple fans were disappointed last autumnwhen the company released only 4G iPhones. Chinese smartphone makers, however,have released more than 100 models of 5G handsets since mid-2019. The tag "iPhone12" topped thetrending topic chart on China's Twitter-like Weibo after the product launch,while remaining hot throughout the day attracting more than 7 billion views and2 million discussions by the afternoon. Compared with last year's iPhone 11, thestarting price of iPhone 12 is $100 higher, while a "Mini" versionwith a 5.4-inch screen were sold cheaper at $699. Apple said that in order to be moreenvironmentally friendly, all its iPhone 12 series will be put in lighter boxeswithout charging adapters or headphones. Some netizens mocked it as"ordering takeaway without boxes or tissue." When Chinese business magazine Caijingopened a poll asking if consumers would buy the new iPhone, among its 36,000participants, a staggering 20,000 voted no by October 14 afternoon, while closeto 10,000 voted yes, they would. Many Weibo users said that they would makeup their mind until the unveiling of Huawei's latest top model Mate 40. Huawei sold 56 million smartphones in thesecond quarter this year, taking up 20 percent of the world's market, for thefirst time beating previous leader Samsung, which took a share of 19.5 percentin the second quarter, according to the International Data Corporation (IDC).Apple took a 13.5 percent share. What also caught attention of Chinesenetizens is Apple's confirmation that China's BeiDou satellite positioningsystem is now also accessible to iPhone 12 models, the topic alone gained closeto 70 million views on Weibo. The BeiDou system has gained widespreadmarket acceptance in recent years. Earlier in July, the "iPhone does notsupport BeiDou navigation" tag ignited heated discussion among Chinesenetizens as all domestic smartphone brands and foreign brands including Samsungclaimed their phones have access to BeiDou services. When Apple's launch event came to a close,Apple's stock price plunged as much as 3.6 percent. As of the U.S. marketclose, its stock price slipped 2.7 percent, giving up gains of more than 6percent ahead of the event. According to data from research companyCanalys, by the second quarter of 2020, Apple's unit shipments in China haveincreased by 35 percent year-on-year, that's before the offering a 5G device. "It is expected that by 2021, nearly60 percent of 5G smartphone shipments in China will be cheaper than $400, while5G penetration in China will reach 83 percent in the next 12 months,"commented Canalys Analyst Jin Shengtao in a report published last month. Competition intensify in domestic 5G devicemarket Competition in China's high-end smartphonemarket is set to intensify with the arrival of the 5G-enabled iPhone 12 fromApple Inc, as domestic companies may unveil more feature-packed models toattract consumers, experts said. Though the US tech giant has been a relativelylate entrant in the 5G-enabled phone market, some tech-savvy Chinese consumersmay upgrade to the new iPhones, which enable data flow at faster speeds andoffer smoother experiences to gaming enthusiasts and those watching streamingvideos, they said. "The new iPhones will increase theshare of high-end phones in the overall smartphone market," said Wang Xi,research manager of global market consultancy IDC. According to Wang, some existing Appleusers may upgrade to the new iPhone 12 series, which has prices ranging from$699 to $1,099. IDC estimates that about 240 million 5G-enabled smartphoneswould be shipped this year, with the Chinese market alone accounting for morethan 160 million units, or 67.7 percent of the total. C.K. Lu, a senior research director withmarket consulting firm Gartner, however, said that the iPhone, a latecomer tothe 5G technology, still does not pack enough punch to attract Android users.Lu said 5G connectivity has already become the standard configuration forseveral Chinese mobile phone makers, and said Apple's launch comes aftercompanies like Huawei, Samsung, Oppo, Vivo and Xiaomi rolled out theirhandsets. Data from the China Academy of Informationand Communications Technology, a government think tank, showed that China'smobile phone shipments stood at 23.33 million units in September, down 35.6percent on a yearly basis. The shipment of 5G mobile phones in Chinaamounted to 108 million units during the first nine months of this year,accounting for 47.7 percent of the country's overall smartphone shipments. Inaddition, a total of 359 models were introduced in the market from January toSeptember, of which 167 were 5G models. Nicole Peng, vice-president of mobility atmarket research company Canalys, said the iPhone 12 will trigger a new wave ofphone replacements for Apple in China before the end of the year and in thefirst quarter of next year. Canalys expects 50 percent of the Chinesephone owners to be using a 5G device by the end of this year, as telecomcarriers and phone brands have made tremendous efforts to push the adoption. "It is expected that by 2021, nearly60 percent of the 5G smartphones in China will be cheaper than $400, while 5Gpenetration in China will reach 83 percent in the next 12 months," saidJin Shengtao, an analyst at Canalys. Global smartphone shipments decreased by 16percent on a yearly basis during the second quarter of this year, according toIDC. Huawei became the biggest smartphone player in the world during the secondquarter of the year, a major milestone for Chinese smartphone makers. The Chinese vendor shipped 55.8 milliondevices worldwide, accounting for 20 percent of the market share in the secondquarter, while Apple shipped 37.6 million iPhones between April and June, whichplaced the company in third position with a 13.5 percent market share. |
