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Apple Targets China as #1 Market for iPhone 5 Release, May Make it 4G

While the tech world has all but written off the prospect of the iPhone 5 being 4G-ready, new reports suggest that a China-only iPhone 5 could be 4G equipped — and be released at the same time (or even sooner) than in the U.S.. Read how China’s economic dominance is making them a bigger focus for Apple than even the United States.
How’s the U.S. economy doing these days?
9.1% unemployment. 18.1% underemployment. Record numbers of home foreclosures. The destruction of the middle class. Government debt levels soaring, with the prospect of defaulting.
How about China?
A burgeoning middle class. Record low unemployment. $3 trillion in reserves. Oh, and huge iPhone 4 sales.
It is for these reasons that new reports indicate that the iPhone 5 will be released simultaneously in China and the U.S. — or even sooner. On Wednesday, reports came out of China indicating that Apple has forged a new deal with China Mobile, which means that, along with China Telecom, Apple now has the top two mobile carriers in line to sell the iPhone 5. This deal is very similar to the deal that transpired in 2012-2011 to bring Verizon onboard with the iPhone 4 in the U.S..
Given the fact that China Mobile is much farther along in rolling out their 4G network — it is slated to fully launch next year — there are even rumors coming out of Shanghai that the Chinese version of the iPhone 5 could have a 4G radio built in, unlike the U.S. version, which most likely will not.
We’ve collected all of the related articles to this unfolding story at the iPhone 5 News Ticker. Check it out.
One of the reasons why a 4G modification to the Chinese iPhone 5 — and particularly to the China Mobile iPhone 5 — is that China Mobile uses a mobile technology that is different from CDMA and GSM and completely proprietary to mainland China. Because of this, Apple will have to craft a China Mobile-only iPhone 5 variant, much like what they did for Verizon with the iPhone 4.
Apple will make this modification happily, since China Mobile brings 841 million subscribers to the table, all of which are potential iPhone 5 users. And since they will already have the hood raised on the iPhone 5 to trick it out for China Mobile’s network, dropping in a 4G radio would only sweeten the deal.
It may, however, leave a bitter taste in the mouths of U.S. iPhone 5′ers.
Suck It Up, America: We’re Not #1 Anymore
The U.S. consumer has enjoyed being the #1 recipient of the first and best on the market for many decades now. But the sad reality is that the U.S. economy is steeped in a deep economic malaise, and as a result, corporations like Apple are going to look elsewhere to make up the difference in sales. There was a widely circulated story this week in Beatweek about how in the U.S., “iPhone 5 fights iPad 3 for tight-budget purchases in Q3 2011.” Beatweek‘s article underscores how, no matter how much excitement may surround the release of the iPhone 5 in the U.S., dreary economic conditions will stifle U.S. sales to some degree.
Another harsh reality for iPhone users that 4G is not as far along in the U.S. as it is in other countries — even China. And because China can potentially deliver a massive amount of iPhone 5 sales, giving them 4G technology — if they are ready for it, infrastructure-wise — is a smart business move for them.
The same could be true about releasing the iPhone 5 in China first.
It very well may be that Apple’s decision to delay the release of the iPhone 5 may have something to do with waiting for the U.S. economy to rebound — which it has not, to this point. If China is in better economic condition to hyper-inflate early iPhone 5 sales, from a business standpoint, would it not make more sense to prioritize China over the U.S.?
After all, Apple — or any multi-billion-dollar U.S. corporation — rarely makes business decisions based on patriotism. And with reports that Apple is preparing to sell 15 million iPhone 5s in the first month of its release alone, you can rest assured that China is going to play a big role in that number.

This post was written by: Irfan Jam

Irfan Jam is a professional blogger, web designer and front end web developer. Follow him on Facebook