Lower Prices Will Hurt Apple's Image in China: Rein

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Sept. 10 (Bloomberg) -- Shaun Rein, managing director at China Market Research Group, discusses the pricing of Apple's new iPhones and how it may impact sales in China with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Consumers, be affordable enough?

I want to bring in the managing director of china market research joining us from shanghai via skype.

Shauna, what do you think about the price?

This is extremely expensive for the average chinese people0 / it is still really very expensive.

There are great tools but none of them are game changers.

I do not think the price , they are down 43% quarter over quarter and china is the second- largest market in the world.

Are people not going to buy the phone because of the price?

What about the product?

There are lower-priced options out there like samsung and lenovo, but what are the products like?

Why did they buy the iphone in china?

It is the coolest product in the biz.

They clamor for it and aspire to it.

Pricing as you mentioned is about 30% more than it is in the united states so actually launching a cheaper iphone is going to hurt their brand image even more.

Right now, they are just not competitive on the hardware side . they're really getting a lot of market share and actually eclipsing apple in overall smartphone market share last month.

What can apple do then?

If they want to sell more phones, what can they do is not about lowering the price?

Make a better ones.

You heard him say it is one of the most forward thinking phones they ever released and i worried y they are starting to commoditize the market.

Nokia started to gain market share by going cheap.

Could the same thing happen to apple?

I do not think they will be the prestigious value product and a longer.

In terms of the prestigious value market, what kind of phones to chinese consumers want to own?

There are a range of price points here, but what kind of phones are people aspiring to?

At the high-end, people like alex he because the screen is big and they have dual sim cards so you can have different mobile carrier numbers but investor should be looking at two brands.

The second is lenovo.

They have great hardware and really great sales channels.

They are starting to scoop up share.

It is only $100 cheaper than the iphone 5s. they might as well just buy the fives if they're going to buy one.

And the chinese market it will only be 17% more though if you have that kind of money, you're going to buy the best of read.

Interesting.

What about building more stores in china?

The biggest problem here is they only have eight stores in china.

I'm kind of confused about that, fewer than the number of stores they have in pittsburgh.

They just announced ever going to open a new retail store, but what about china.

I just don't quite understand why are others -- they are so far behind ron johnson.

They said they wanted to have 25 apple stores two years ago.

They are three years behind schedule right now, emily.

People still like apple but they cannot buy the products.

The second thing they need to do is sign up a long-term carrier deal with china mobile . they are not signed up with them yet.

This text has been automatically generated. It may not be 100% accurate.

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