For about a month, Chinese consumers waiting for the iPhone 6 to debut in their country have been resorting to the gray market, paying steep markups for Apple smartphones bought abroad.
With regulatory hurdles cleared at last, the phone went on sale Friday in the mainland. And while consumers in some other markets waited in long lines to buy the phone (along with Chinese scalpers planning to smuggle it back home), in Shanghai the queues were quite manageable. Only people who had preregistered could pick up a smartphone.
Western products are often more expensive in China because of taxes or markups, and the new iPhone is no exception. The most inexpensive model sells for $863 at the China Apple Store, versus $649 for a contract-less model in the U.S.
For Apple, keeping Chinese fans happy is key: Greater China, including Hong Kong and Taiwan, accounted for 16% of sales in the most recent quarter. The iPhone 6 launched in Hong Kong on Sept. 19.
Giants like Apple and Samsung face increasing competition from fast-growing Chinese smartphone makers Xiaomi, Huawei and Lenovo, which sell high-quality phones at lower prices. (Four-year-old upstart Xiaomi was the No. 1 smartphone vendor in China in the second quarter, according to data from Canalys, and Xiaomi's international marketing director, Amanda Chen, is one of Ad Age's 2014 Women to Watch China).
So what makes people stick with Apple? As the iPhone 6 launched, Ad Age visited an Apple Store in Shanghai--one of 12 in mainland China--to chat with the brand's most loyal Chinese customers.