Apple iPhone 6s Sales in China Below Expectations - A China Researcher.

Junheng Li with boutique research shop J.L. Warren Capital this morning opines that Apple‘s (AAPL) rollout of its iPhone 6s is failing to meet expectations, citing as the main reason a failure of the Chinese market to deliver.

“According to information and/or data readily available from AAPL suppliers, we consider that the iPhone 6s initial launch in the 12 markets globally, is not meeting market expectations,” writes Li.

Oddly enough, although Apple announced on September 28th that its first-weekend sales of the 6s beat last year’s 10 million for the iPhone 6, selling more than 13 million units, Li argues the result was underwhelming.

“During the first week (including weekend) or 3 days post launch, we estimate ~13million units were sold. This number is lower than original expectations, largely due to an overestimated demand from mainland China.”

Li cites some China market data from something called Gray Market Marker, which apparently collects the price of iPhones trading on the black market:

AAPL launched the iPhone 6s simultaneously in Hong Kong and mainland China which cannibalized sales in HK. According to the largest grey market make [sic] a consumer electronics trading platform, the current spot prices for many models even on the launch data (9/30/2015) were below the official retail prices, unprecedented in the iPhone launch history. In total, we estimate that ~2.5-3 million of units of the 6s were sold in the mainland and ~1.5 units sold in HK. In comparison with previous years iPhone launches, when the mainland was not included in the initial launch, only 30% of the 6s purchases were from mainland, vs. 50% in previous years.iPhone 6s Accessories

(One point not addressed by Li is whether the premium can be expected to be lower, or even absent, precisely because the iPhone 6 was only available on the black market last year, having been left out of rhr first round of retail sales.)

Li offers one explanation for why she thinks sales to China are below plan: “Since ZTE and Huawei already launched smart phones with 3D force touch, the new screen is not novel to Chinese consumers.”

Li also offers some other tidbits, such as that the iPhone that comes in rose gold finish was the best seller, making 45% of sales.

As for the outlook, she opines,

We believe that China is the biggest moving piece for AAPL’s global sales in 2015, given it is about 20+% of the company’s global market and the demand for the iPhone is growing at ~20% according to our research. We currently project 200 million units of sell-in for iPhone 6/6+ and iPhone 6s/6s+ combined in 2015, which is 10million sell-through units lower than, the current street consensus.

Apple shares today are down 81 cents, or 0.7%, at $110.50.

Microsoft’s Giant New Retail Store Is Very Different From an Apple Store

Microsoft opened its new flagship retail store on 5th Avenue in Manhattan on Monday. At first glance, you might think it looks an awful lot like a certain other tech company's flagship retail stores, including this one just a few blocks up the street. But, according to a Microsoft spokesman I spoke with at the grand opening, you'd be wrong. The new Microsoft Store is very different from an Apple Store, and in multiple ways. For instance, the spokesman pointed out:

1. The Microsoft Store has different products from an Apple Store.

You won't find any MacBooks here!

Photo by Bryan Thomas/Getty Images

It's difficult to argue with this one. In an Apple Store, you'll find rows of tables stocked with Macbooks, iPads, iPhones, and related acccessories. In contrast, the Microsoft Store features rows of tables stocked with Surface Books, Surface tablets, Lumia phones, and related accessories.

2. The Microsoft Store has different colors than an Apple Store.

It's hard to see from this photo, but trust us, the wood is a significantly darker shade. 

Photo by Bryan Thomas/Getty Images

Apple Stores are famously minimal in their interior design, with blond wood display tables set against a silver and white background. The new Microsoft Store, on the other hand, has somewhat darker wood tables, and the walls feature a lot of blue, and a few other primary colors, in addition to white. Imagine a Uniqlo, but for computers. And whereas Apple Stores often feature all-glass facades, the Microsoft Store's facade is only mostly glass.

3. The Microsoft Store's help desk is called by a different name.

It doesn't take a genius to see that Microsoft's tech-help bar is a one-of-a-kind feature. 

Photo by Bryan Thomas/Getty Images

The spokesman I talked to was at pains to point out that a unique feature of the Microsoft Store called the Answer Bar. It's basically a giant desk near the back of the store where you can go to talk to a Microsoft representative about the problems you're having with Microsoft products. This should by no means be confused with Apple's Genius Bar, which—oh, I give up. 

Apple Tells Court it Can’t Unlock New iPhones

Apple Inc. told a federal judge that it “would be impossible” to access user data on a locked iPhone running one of the newer operating systems, but that it could likely help the government unlock an older phone.

In a brief filed late Monday, the company said “in most cases now and in the future” it will be unable to assist the government in unlocking a password-protected iPhone. The brief was filed at the invitation of U.S. Magistrate Judge James Orenstein, who is considering a request from the Justice Department that he order Apple to help government investigators access a seized iPhone.

The company said:

In most cases now and in the future, the government’s requested order would be substantially burdensome, as it would be impossible to perform. For devices running iOS 8 or higher, Apple would not have the technical ability to do what the government requests—take possession of a password protected device from the government and extract unencrypted user data from that device for the government. Among the security features in iOS 8 is a feature that prevents anyone without the device’s passcode from accessing the device’s encrypted data. This includes Apple.

The brief mirrors Apple’s public comments in a debate with law enforcement over phone encryption. In recent weeks, 16 prosecutors sent letters to the Senate Judiciary Committee calling for back doors into devices for law enforcement.

However, the iPhone in question is running an older operating system, iOS 7, for which Apple “has the technical ability to extract certain categories of unencrypted data,” the company said in the brief. Apple can access some user-generated files in Apple’s native apps on phones running iOS 7 and older operating systems, but it can’t extract email, calendar entries or any third-party app data, the brief said.

It’s unclear why the Justice Department is seeking access to the iPhone. The details of the case remain under seal.

Apple said it could likely help the government if the iPhone is in working order, without substantial costs or burden, but the company would prefer not to.

“Forcing Apple to extract data in this case, absent clear legal authority to do so, could threaten the trust between Apple and its customers and substantially tarnish the Apple brand,” according to the brief, signed by Apple’s outside counsel Ken Dreifach, Marc Zwillinger and Jeffrey Landis. “This reputational harm could have a longer term economic impact beyond the mere cost of performing the single extraction at issue.”

Judge Orenstein, in an earlier ruling in the case, was doubtful that he had the authority to force Apple to help the government. The Justice Department has said in this case and others that federal judges have such power under the All Writs Act, an 18th-century law.

iPhone 6S and iPhone 6S Plus

The iPhone 6 and iPhone 6 Plus look identical, but they do inevitably differ in the size and dimension departments. With the iPhone 6 Plus, you're getting a 2cm taller, 1cm wider and 2mm thicker phone. It doesn't sound like a lot, but it clearly makes a huge difference when you handling the two iPhones.Click Here For iPhone 6s and 6sPlus accessories.

Using the iPhone 6 Plus one handed is a dramatically different experience to holding the iPhone 6 and is likely to be a major factor for most picking between the two. Thankfully, it's not as bad as something like the Nexus 6, but it's going to be trickier for smaller hands. Reaching over the other side of the virtual keyboard is not easy to do for instance. You got little chance reaching your thumb to the top of the screen as well.

Some will get used to it though. It's not instant but like the Note 4, it handles its large stature well and does begin to feel more natural after a week or so.

If you're reticent to move to a big phone, then the iPhone 6 is going to be a better fit. It's still a bit of jump on the 4-inch iPhone 5S, but Apple strikes a good balance between giving you the extra screen estate and making it easier to handle than the 6 Plus.

While these are arguably not the most memorable phones from a design perspective, but as we've come to expect from Apple, they are beautifully designed and built to take some everyday rough and tumble. The screen is the most at risk of damage so Apple has included toughened glass on both displays. That's not stopped a few of the TR team cracking their iPhone screens, but it's not the only phone that has not survived an accidental drop on the floor.

Official prices of Apple iPhone 6S, 6S Plus are out

NEW DELHI: Apple's much-awaited iPhone 6s and iPhone 6s Plus will cost Rs 62,000 for the lowest storage variant and as much as Rs 92,000 for the top-end model, distributors said Thursday. The India prices are much higher than those in overseas markets such as the US and Singapore, which may deter buyers, especially those intending to upgrade from iPhone 6 and iPhone 6 Plus, experts said.

The latest phones, which have been offered for astronomical prices on websites such as eBay India, Quikr, Olx and Flipkart since the US launch on September 25, will be available for pre-registration at Apple's local distributor websites, including Brightstar, besides online portals Paytm and Snapdeal.
The 16GB, 64GB and 128GB variants of the iPhone 6s will be sold for Rs 62,000, Rs 72,000 and Rs 82,000, respectively, and similar versions of the 6s Plus will cost Rs 72,000, Rs 82,000 and Rs 92,000. In the US, the cheapest iPhone 6s is listed on Apple's website for $649 (Rs 42,235) while the same model on its Singapore website can be purchased for S$1,048 (Rs 48,295).

ET was the first to report the prices last week, which have now been confirmed. The new models in India are 14-16 per cent more expensive than the devices launched last year.
"Globally, pricing remained similar to last year's models, but a strong dollar led to increase in pricing in certain regions this year...India, not being a high-volume country for Apple, the increase in pricing might be a result of weak rupee and rise in duty compared to last year," said Tarun Pathak, a senior analyst at Counterpoint Technology Market Research.
Other analysts told ET that an outgo of more than Rs 60,000 for a smartphone, even on monthly installments, would be a huge amount for most iPhone aspirants, whic