Hi guys. I was in Shanghai on Friday and Saturday and spent a few hours each day in the Apple store and the China Telecom rally. I was on Nanjing Rd. mid-morning both days. I must say at first I was a bit surprised especially at the China Telecom event. People seemed more interested in the video games and the perfomers than the iphone. I proceeded to Apple store which was packed, but no line or chaos. After observing what was being purchased I started talking to one of the employees. He was from the states and was very generous with his time answering my questions. I told him how I was surprised at how orderly everything was and that I was a little disappointed in the lack of enthusiasm. This is when he explained to me about the ireserve process. Nobody can walk into an Apple store and buy an iphone 5 or a 16GB ipad mini. They must purchase online and then can pick them up at store. This is also true for the China Telecom, you couldn't purchase at the rally, it had to be ordered online. The lead time for a i5 is 24 hours from the time of purchase online. I was told that the mini was selling extremely well and was their biggest seller before the i5 was released. I also saw a lot of people buying the new ipad and Macs. The Shanghai store gets 20 - 30K customers a day and talking with a number of employees they were estimating Friday and Saturdays numbers around 50,000. I was also told that people did start lining up on Thursday night, but they had employees there to tell people that lining up wouldn't get you and iphone 5 and they had to be reserved online. That being said the store was selling a lot of i5's and other products. By my estimates there seemed to be about 10-15 sales going on at any one time. I don't know what that equates to, but there was definitely robust sales happening.
I was shocked when I saw the market reaction later that night and the headlines. There was one article with a headline like "Apple Loses Cool Factor in China." Base on my experience during my travels over the last two weeks in China this could not be further from the truth. There have been countless times over the last month that I pulled out my iphone 5 in Cambodia, Vietnam and China and crowds would form around me to get a look at it.
Sorry for the long story, but I thought I would share some of the reality in the world and call out the fabrications by the media.
mc. didn't mean to imply you had a "horses mouth"-don't take that literally-that's an old saying that means you heard something directly from a first hand source-not second hand or hear-say-sorry if you took the saying the wrong way-you had a very good informative post.
It's called fud.....fear uncertainty doubt , it's what shorts use and bashers use like cnbc
Do u finally believe us when we tell you a conspiracy to get you to sell the most quality company in the world at 2 times 2015 cash is criminal and evil ????
I'm glad my first post on this board was not met with flames (other than being told I have a horses mouth). I just got to Hong Kong, so I will check out the activity here as well.
Here is a little more info from my conversations with the Apple employees. They used the online reservation system for the obvious reason of not having an egg throwing incident again. I was also told it was so people didn't buy in bulk and then sell them on the secondary market. This didn't seem to make sense to me. Why would you pay retail for the phone in hopes of selling it on the black market for a slight markup especially when a consumer could buy from the Apple store directly? I suppose if inventories were tight there could be an oppertunity to make a few bucks. Then again it doesn't make sense to drive to NH from Mass, buy a phone a ship them to China. The i5 is a little under $200 cheaper in the US so this seems like a lot of work for not much savings.
It was also pointed out to me that the i5's can be had cheaper at the telco provideres than thru the Apple store.