[Beijing Diary] I Hate the US but Want to Buy an iPhone

Despite severe domestic demand sluggishness, there are still products that sell well in China. One of them is the American Apple’s ‘iPhone.’ Apple’s sales in China recorded $15.76 billion (approximately 20.4769 trillion KRW), an 8% increase from last year. This contrasts with the global sales, which decreased by 1% year-on-year, marking a third consecutive quarter of decline. Apple CEO Tim Cook has previously stated that he sees “definite acceleration in sales” in the Chinese market.

Chinese people are entering an Apple store in Shanghai. (Photo by Bloomberg News)

The Chinese people’s love for the iPhone is special. Even amid a flood of local companies’ mid-to-low-priced phones, the most popular model among the younger generation is undoubtedly the iPhone. In the second quarter, Apple’s market share in China’s mobile phone market expanded to 16% from 15% the previous year, and shipments increased by 5% compared to last year. During the same period, shipments of Vivo, the market leader with a 20% share, and Oppo, the second with 18%, declined by 14% and 4%, respectively.

For Apple, this is a meaningful achievement in China, where relatively high-priced durable goods such as mobile phones, laptops, and automobiles have not been selling well recently. China’s monthly retail sales, which soared to the 18% range in April due to the base effect, fell to 3.1% in June, and the consumer price index (CPI) inflation rate was 0% in the same month. All economic indicators point to a contraction in consumer sentiment.

Nevertheless, the Chinese bought the ‘iPhone.’ They spent more than 20 trillion KRW on phones, laptops, accessories, and services bearing the apple logo. Considering that people replaced their phones more frequently than usual over the past three years due to extended indoor living, this proves that the iPhone is an irreplaceable luxury item. Moreover, amid intensified U.S. pressure on China and worsening anti-American sentiment within China, Chinese consumers opened their wallets despite suppressing their dislike for the U.S.

A similar phenomenon appears in the automobile market. Despite local companies leading the electric vehicle sector, the popularity of the American Tesla remains strong. It can be seen that political and diplomatic issues and consumer sentiment in the marketplace are thoroughly separated and move in their own directions. Of course, this also involves the Chinese people’s prejudice and emotional confusion, who recognize the U.S. as a great power comparable to themselves but do not regard South Korea in the same way.

The popularity of Chinese foods like Malatang and Tanghulu in Korea also shows a somewhat similar context. According to a perception survey on China conducted by the Pew Research Center from February to May, negative views of China among Koreans increased from 63% in 2019 to 77%. However, the popularity of Chinese food, especially among the younger generation, is rather intensifying and spreading on social networking services (SNS). According to the Korea Agro-Fisheries & Food Trade Corporation (aT)’s Food Industry Statistical Information, Tanghulu and Ice Tanghulu ranked first and third among popular search terms in the frozen and ready-to-cook food category for teenagers. This breaks the intense anti-China sentiment among young students through food and taste.

This puzzling psychology shows that the core of consumption lies in the competitiveness that makes people want to say “nevertheless,” and want to buy and eat. The irreplaceable uniqueness and the unmatched perfection of the original are relatively less affected by the muddy waters of politics and diplomacy.