Rare Ap­ple earth earn­ings price get rise China will boost not af­fect global de­mand bil­lion

China Daily (Canada) - - LIFE - By GAO YUAN gaoyuan@chi­nadaily.com.cn By YANG ZI­MAN yangz­i­man@chi­nadaily.com.cn

China con­tin­ued to be the main­stay for tech gi­ant Ap­ple Inc, with a siz­able chunk of its fourth-quar­ter rev­enues com­ingThe in­crease­from thein prices coun­try by China’samid a slow­down­largest rarein de­mand. earth miner TheUnit­ed­will not Statescom­pa­ny­have a ma­te­rial said ef­fec­ton Wed­nes­dayon global that pricesChina or ac­counted­de­mand, ac­cord­ing­for $12.5 bil­lionto a leadin­gof the $51.5 ex­pert bil­lionon the rev­enue sec­tor.it earned China for North­ern­the fis­cal quar­ter Rare Earththat ended (Group)in Septem­ber. High-Tech Co The Ltd com­pany in­creased said the rev­enue in­dica­tive in China price hadof praseodymi­um­n­early dou­bled and from neodymi­umthe same pe­riod ox­idesa year by 10,000 ear­lier, yuan­but showed­per ton ($1,573)a slight this de­cline week, froma 4 per­cent­the pre­vi­ous hike. At quar­ter.the close of trad­ing on Wed­nes­day,Strong sales theirof the av­er­age­flag­ship price iPhone stood 6S/6Sat 257,500Plus in yuan­the per coun­try ton, boosted ac­cord­ingthe com­pany’sto the Shang­hai profit Me­talsby 31 per­cent Mar­ket. from the But cor­re­spond­ingChen Chuan­dong,pe­riod last a year. se­nior re­searcher from Bao­touAfter com­plet­ing Re­searcha four-day In­sti­tute visit to of Chi­naRare Earths,last week, in­sist­sCEO thatTim Cook sup­ply pledged­still out­strip­scon­tin­u­ous de­mand, in­vest­men­tand thein the biggest­coun­try. is­sue He fac­ing­did not the give mar­ket de­tails of is il­le­galthe planned min­ing. in­vest­ment.

“Le­gal“We an­tic­i­pate com­pa­nies enor­mousare still over-pro­duc­ingchanges in China and over il­le­galthe sup­plies­next sev­eral are years,” ac­tive Cook while­said. de­mand“We are rea­son­ably­has been well-po­si­tioned sta­ble. The price(in China)hike by and Chi­naI am North­ern­sure that we Rare­can do Earth bet­ter.” has not The be­come com­pany, ob­vi­ous how­ever,in the glob­al­did not sup­ply dis­close and the de­man­dex­act chain,”sales num­bers­said Chen.for iPhones in the Ear­lier coun­try. this month, China Ap­ple North­ern shares said re­mained mar­ket con­di­tions had forced it to cut its out­put tar­get for the year, as did the coun­try’s other five ma­jor pro­duc­ers. lack­lus­terThe lat­est in in­dus­tryNew York fig­ure­son Tues­dayshow that and the were In­ner traded Mon­go­li­aat about $114.55 au­tonomous­per share. re­gion, China’sThe grow­ingrare earth mid­dle pro­duc­tion­class in China base, has reg­is­tered­given Ap­ple ex­portsa rapid­lyof 2,663.8 in­creas­ing­tons, a cus­tomer36.5 per­cent base. in­creaseAp­ple opened­from the its same25th re­tail pe­riod storeof lastin the year. coun­try on Satur­day Av­er­age in Dalian, ex­port Liaon­ing prices, prov­ince. how­ever, have fallen by 34.7 The per­cent com­pany year-on-yearhas been plan­ningto 32,000 to add yuan more per brick­sand-mor­tar ton. Ac­cord­ing to stores in­dus­tryin the newssec­ondweb­site and Min­ing.com,third-tier ci­ties. re­cent fig­uresBut with­China dis­closed hav­ingby fewer the As­so­ci­a­tion first-time of smart­phoneChina Rare users Earth and In­dus­try­lo­cal com­pe­ti­tion­show that fast about clos­ing90 in, per­centAp­ple is of set theto face na­tion’s heav­ier rare head­winds.earth pro­duc­ers Ni­coleare cur­rent­lyPeng, di­rec­tor op­er­atin­gof the Shang­hai-base­dat a loss. re­search firm AlthoughC­analys China,a ma­jor said rarethe fastest-growingearth pro­ducer hand­se­tand ex­porter,seg­ment for in a Chi­na­long timeis the China1,200 yuan­has had ($180) lit­tle to say 3,000in set­tingyuan, where prices, Chi­nese ac­cord­ing ven­dorsto a re­centsuch as anal­y­sis Huawei by Tech­nolo­gies Shen­zhen-basedCo Ltd CICon­sult­ing.andXiaomi Corp Too have manyan es­tab­lisheds­mall com­peti­tors, pres­ence. ex­ploit­ing In re­sources­the above-3,000in a waste­fu­lyuan price man­ner, range,said the where re­port, hadthe iPhone caused 6S the se­ries price is war placed,at a de­mand­time whe­nis cool­ing. de­mand is slug­gish. “I think“A lot con­sumer­sof com­pa­niesin China in the rareare now earth more industry ma­ture have when­been suf­ferin­git comes in to terms smart­phone of choices,” Peng said. “Most of the cus­tomers look for qual­ity as well as the brand value.”

The cheap­est iPhone 6S model is priced at 5,288 yuan in China.

Huawei, a Chi­nese brand which launched a flag­ship model with an above-4,000 yuan price tag two months ago, is qui­etly re­duc­ing the pric­ing back to the 3,000-4,000 yuan range.

Be­cause of the tem­po­rar­ily with­drawal of Huawei, Peng said Ap­ple will main­tain its edge in the high-end mar­ket in the forth­com­ing quar­ters un­til new chal­lengers emerge.

Ap­ple also ex­pe­ri­enced a slump in iPad sales in the fourth quar­ter.

It sold less than 10 mil­lion units of the tablets in the last quar­ter, down 20 per­cent year-on-year. Ap­ple plans to sell the iPad Pro, a larger screen next-gen­er­a­tion tablet, by next month.

The dwin­dling de­mand for iPads is also hurt­ing Ap­ple’s sup­ply rev­enue, chain. af­ter the 17-year ex­port Some quota com­po­nent­was lifted sup­pli­ers this year,of iPad drag­ging de­vices downare down­siz­ing rare earth prices,”or shut­ting­said Chen. down pro­duc­tion.“Ex­cess pro­duc­tion ca­pac­ity, Tai­wan-bas­ed­lack of reg­u­la­tion Coretronic on Corp, com­pe­ti­tiona panel dis­playand un­der­priced­maker of Ap­ple, ex­port­sis haltin­gare the pro­duc­tion three ma­jor at fac­torsa fac­tory af­fectin­gin the east­ern China’s vul­ner­a­bil­i­tyc­ity of Nan­jing,to price ac­cord­ing fluc­tu­a­tions.”to re­ports.

Le­gal com­pa­nies are still over-pro­duc­ing and il­le­gal sup­plies are ac­tive while de­mand has been sta­ble.”

Newspapers in English

Newspapers from China

© PressReader. All rights reserved.