“China’s smartphone market is huge. Local vendors are continuing to gain share,” Chandan Sarkar writes for Seeking Alpha. “Apple (AAPL) is managing to hold on to its high end market share, but local vendors are about to move upstream.”
“Although Android now commands more than 68% of the smartphone market in China, it is not exactly turning out the way Google (GOOG) may have wanted,” Sarkar writes. “Windows Phone share in China, what little there is, is currently skewed towards the high end. But the recent introduction of the Nokia (NOK) Lumia 520 may change that.”
Sarkar writes, “Although Apple’s market share in China has seen modest ups and downs over the past two quarters, its overall units continue to see decent growth given that the market, overall, is growing — thus stagnant market share does not mean stagnant sales. Given that much of the growth is taking place in the low end of the market where Apple does not currently play, these market share statistics suggest that Apple’s market share at the high end remains quite strong in China. The main issue for Apple in China is that Lenovo, Huawei, and ZTE are all creeping up the food chain.”
Read more in the full article here.
Android’s market share in China is an almost meaningless metric as far as Google is concerned because the Chinese government has blocked access to Google’s search engine and associated advertising from which Google derives the majority of its revenues. China has also blocked the Google Play store. Google has zero presence in China so how Google is benefiting from Android penetration in China is beyond me.
Apple sells the whole widget. Regardless of its smaller market share, Apple derives the whole of revenue and profit from its hardware sales in China. In fact China is becoming a significant part of Apple’s revenues. Apple is an aspirational brand in China, unlike the majority of Android phones which are nothing more than glorified feature phones.
What Apple needs to do to solidify its presence in the Chinese market is bring out a cheaper iPhone that sells for $350 without a contract and an iPhone with a bigger screen, say 4.8″ which should satisfy every segment of market demand in China.
concur.
Yes.
👍 Yup.
Key…. Word…. Creeping. As iStated 2 years AGO!! Time is on AAPL’s SIDE. Put that in your pipe & Smoke IT ANAL ISTs. Oh iMust go to the doctor….. My RIMM job hAs turned out to be a full blown BLACKsmerry. Go get the petty cash drawer iBuyin. What do iKnow i’m just an amateur …. Good FCKn RIDDENCE!
Jah, how many times has Mom asked you not to drop acid on a school night?
Why China is such a slog? They are not called Red China for nothing and they take care of their own manufacturers.
Historically countries like china and Japan have been very hard nuts to crack for us businesses. Apple have succeeded because their products are cool and they appeal to the high end market. For smartphones that’s were the money is. Actually true for most products.
I don’t understand why people are so excited over China when it comes to everything. There are 6 BILLION people living OUTSIDE China…