Apple-China Mobile deal’s biggest loser: Samsung

“Apple’s long-awaited deal to sell the iPhone through China Mobile – the world’s largest mobile carrier – is set to up the ante in the smartphone war with rival Samsung, which stands to lose its leading position in the mainland market,” Ansuya Harjani reports for CNBC Asia.

“‘I think Samsung would be the biggest loser of the deal. There’s no question Samsung will lose market share. Apple will take a large share of consumers who are willing to consider non-Chinese brands away from Samsung,'” Bob O’Donnell, founder and chief analyst, Technalysis told CNBC on Monday,” Harjani reports. “‘Apple iPhone 5s at all three carriers will for sure ignite a ‘price war’ boosting the overall iPhone 5s sales in China,’ said Tom Kang, research director at Counterpoint, adding that Apple and Samsung may be tied in terms of smartphone market share by January or February – a peak shopping period in the mainland due to the Chinese New Year holidays, which begin at the end of January.”

Harjani reports, “In October, Apple’s share in China’s smartphone market stood at 12 percent, compared with 17 percent for Samsung, according to Counterpoint.”

Read more in the full article here.

MacDailyNews Take: The only market Apple wants to dominate — and does, quite handily — is the market for quality customers: Those who can recognize value and who have disposable income and the proven will to spend it. General market share (market share for market share’s sake) is of no interest to Apple. Amassing cheapskates and/or the poor is a fruitless exercise better left to the patent-infringing Apple wannabes.


  1. As it should be. Ol’ Sammy here has been ripping off American innovation since Day One. All of their washing machines look like a cookie-cutter version of GE’s, who are based in New York. Their Chromebox looks like a rip off of the Mac Mini. And then there is the Samsung Galaxy. The kicker is that they are the most anti-American country out there. Look up Psy “Gangnam Style” 2004 “hit”, “Dear America”, and see how they really like us. They like our stuff, yet hate the people who made them. It would be funny if it wasn’t pathetic.

    1. You’ve got part of the vibe about South Korea and the U.S., but not all. As an American who has lived in South Korea many years I’ve seen my share of anti-Americanness, but more often good-hearted generosity toward me. What most Americans coming to Korea don’t realize is how clueless, naively arrogant, an self-entitled they act. This is a sophisticated, ancient culture with many layers of irony an nuance that get totally overlooked by the U.S. Just sayin’ . . .

  2. I don’t think Samsung will just sit back and let Apple take away their market share without a fight. Just remember, Samsung makes some fairly low end smartphones at relatively low price points. Samsung will simply flood the market with more models at lower prices making it difficult for Chinese consumers to ignore. Samsung has no restraints whatsoever on pricing. The company’s main interest is to move lots of smartphones. All we’ll see from the various surveys is Samsung smartphones outselling Apple iPhones without regard to prices.

    Apple will not be in any war of its own making. The news media and pundits will say that Apple is losing the war because that’s how they want it to appear. Apple will simply go about selling their iPhone at prices made to keep their accounting books well into the green. Apple will sell a good number of iPhones on China Mobile and increase revenue but will still lose market share to Samsung because with Samsung, everything possible will be done to hold and/or increase market share to make iPhones sales appear ineffective.

    1. Apple is on about half as many carriers as Samsung.
      Apple has yet to release a large screen phone.
      Apple can easily lower their prices on the 5c etc. if they want to grab marketshare.

      Samsung is about tapped out when it comes to carriers.
      Samsung are already selling all the large screen phones they can. (2 for 1 deals, free tablets etc.)
      Samsung already has thin margins and the cheap knockoff moniker.

      Who has the greater capacity for market expansion?
      What are Samsung gonna do? Release a new phone with more eye tracking gimmicks that don’t work?

      1. Most theologians agree that the actual “Number of the Devil” is 616, and the region that happens to have that number as an area code is the Grand Rapids, Michigan area. You are off by a couple thousand miles…

        1. And you’re off by a dialing prefix. The 666 in the phone number listed above is a dialing prefix and equates loosely to a neighborhood. The area code was 408. Not sure how you got those reversed. I haven’t checked exhaustively, but I think every area code contains dialing prefixes of 666.

          And just to make this post somewhat on track, I’ll bet Samsung uses part numbers *somewhere* that have a 666 in them. 🙂

  3. Most respected theologians agree that the actual “number of the Devil” is actually 616, and the region that happens to have that number as an area code is the Grand Rapids, Michigan area. You are off by a couple thousand miles…

  4. I’ll say it again, market share absolutely matters. It might not matter to profits, but it absolutely matters from a developer’s perspective.

    I love that we get all the best apps, designed to our standards and always exclusive launch windows. Have we all forgotten the darks days of trolling compUSA’s poor excuse for a Mac software aisle? I fear returning!

    1. Sure, market share may matter… somewhat. But it has been demonstrated again and again that the Android (80%) market share is mostly taken up by cheap BOGO phones owned by people who do not buy apps or do not make in-app purchases. It has been shown that for every $1 of iOS app revenue, Android makes around $0.63 (or less). That’s the critical metric, and will keep developers working for iOS for a looooong time. Not to mention the fragmentation issue (still approx. 40+% of all Android is on 2.x,while 4.4 represents approx. 1% of all Android. Conversely iOS 7 represents something over 75% of all iOS. Again, this will help keep developers in the iOS camp. It’s easier, simpler and makes more money to develop for iOS than Android. Simple stuff, really.

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