Will Chinese Consumers Choose the iPhone?

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Sept. 23 (Bloomberg) -- BDA China's Duncan Clark discusses Apple's iPhone sales in China. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Their business in china.

We do not know for sure but what do you think as far as the numbers break down?

For the first time ever the iphone was available in china at the same time it was available here.

This is the first simultaneous launch and rather like hollywood we are seeing the linking of the tech firms to the enormity that china represents.

China has its challenges.

There was discussion about not having a deal with china mobile.

Phones are sold in the open market and people have been lining up in droves.

They have been lining up.

What are consumers saying, are the excited?

We have the two phones launched so that is an interesting psychology.

It is only $100 more to go to the high-end.

We are seeing the psychology of i want the best.

The phone is an expression of my personality, of my status in society.

We thought the iphone [indiscernible] --5c would be perfect for the emergent -- emerging market.

It is all about going to the premium end of the market and that is why we think the gold is an additional boost to this phone.

The gold has been and shortest supply.

The hardest one to get.

Talk to me about the brand perception of apple and china -- in china.

We have talked about how apple has lost its cool factor there.

Now that these phones are out to my is that really true or do people still aspire to have an iphone?

It has been a good weekend for iphone.

-- apple.

This is a good idea for them to go for that higher-end market.

If they started to slip they would find themselves at the mercy of the lower and smart phone manufacturers.

Samsung has been offering more screen sizes.

That may be a challenge but this is a great launch for them particularly with the cool factor of the gold and the buzz to restore their cool.

Click some of the samsung phones have a your screen, it has been very appealing for chinese consumers.

What do they think of samsung?

Samsung is very well integrated.

Is it as aspirational as apple?

Wax they are spending more now on marketing and r&d. the marketing power is evident around the world.

Apple has relied on buzz to some extent but they will have to invest more in diversified sets of products to keep the cool factor at the high-end.

Samsung is seen as a very well embedded player.

In terms of market share apple is number seven in china.

How do you see that shaking out down the line versus samsung, versus some of the cheaper players?

It would be a mistake to go to the low.

In china you always lose to the foreign player at the low-end because you can never compete on price and distribution.

Nokia had that for a long time but lost it.

I think apple is well a devise to keep going for the high-end.

Maybe some trickle-down products.

We are seeing it outsell by a big margin.

How many stores do they get in -- do they need in china?

More -- one of the restraining factors is the ability to find good locations.

There is a bit of a constraint on how many really good shopping centers they can find and they need to find a safe place as well.

We have seen in previous launches the crush that can happen so they have been shifting to online a lot more.

They have to gauge it that there's a huge amount for them in retail.

Thank you for bringing us the perspective on china.

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