New iPhone 'will boost Hong Kong's retail sales' with mainland China demand a plus
Experts predict high-demand for Hong Kong iPhones, even though the device will be released on the mainland at the same time
The new Apple iPhone will give the city's battered retail sector a shot in the arm, experts say, as the price difference between Hong Kong and the mainland will help stimulate demand from across the border.
Previous iPhone launches have seen long queues in the city, as traders snap up the latest model weeks or months before it is sold across the border. The iPhone 6S will be offered in both markets on September 25, but prices are likely to be 15 per cent lower here, and with limited supply and strong demand, resellers still hope to cash in.
ANZ senior economist Raymond Yeung said sales of the phone "will give an obvious short-term boost to retail sales and help top-line retail sales in September and October".
Demand for the iPhone has driven record profits for Apple in the past. Speaking at the unveiling of the new model, chief executive Tim Cook said the iPhone market in China had grown 75 per cent year-on-year, compared with 35 per cent globally.
China is Apple's second-largest market after the Americas, bringing in US$13.2 billion in the latest quarter, up 112 per cent on the same period last year.
While ANZ's Yeung thought the iPhone would have a positive effect on Hong Kong's retail sector, he warned the overall outlook remained weak. A reduction in tourism and domestic consumption has dragged down sales, while a strong Hong Kong dollar, pegged to the US dollar, has reduced the spending power of overseas visitors, ANZ says.
At the Apple store in Causeway Bay yesterday, some shoppers who still formed long lines to buy the current generation of iPhones expressed excitement about the new model.
"I was using the [iPhone] 5, so I need to upgrade to the new one. At least my phone has some resell value, so I can go ahead and trade," said Joseph Tsang Ka-ho, 40, who was visiting the store to learn more about the 6S.
But 26-year-old Terry Lam King-wai was less impressed.
"There's not much difference between the old and the new iPhone 6S. The appearance is the same, but with a new colour," he said. "I'll probably wait for the next generation."
