iPhone Sliding Behind Samsung in China

by Kai Hendry

Recently Apple managed to get hold of a second partner in China. But the move may already be late to enable Apple to come near the already established Samsung, which currently has market share that is three times higher than that of Apple. Apple entered into partnership with China Telecom Corp which started the sale of Apple’s iPhone. Apple is trying to boast its meagre share of 7.5 percent in smarphone sales in China. Samsung currently enjoys around 24.3 percent smartphone market share by following the strategy of partenering with the nation’s three largest 3G networks since they launched the services in 2009, a study by research firm Gartner notes.

China is a very important market for smartphone makers because the shipments are likely to rise by 52 percent this year to 137 million units, making it the world’s biggest smartphone market by overtaking U.S. Apple is itself to blame for this restricted success in the Chinese market because it still has not come up with a mobile device that is compatible with China’s biggest mobile operator China Mobile. Samsung, in contrast has successfully partnered with all the big network oeprators of China and resultantly has reaped benefits in this very important market. Gartner has noted that Apple will not be taking over the lead from Samsung in China anytime soon because China Telecom is the smallest national network operator of China and the impact it will have on iPhone sales will be limited to the size of its network.

The present gap of 16.8 percent between Apple and Samsung has doubled only recently with Samsung following a successful strategy in China. However, globally the story is quite the reverse. Samsung might be number one in china while Apple lags at number 5 position but Apple recently pushed aside Samsung globally to become the number one vendor of smartphones in the world. This recent partnership of Apple with China’s two carriers will grant it access to 34 percent of China’s 988 million mobile users. This strategy is not beneficial for  Apple because Samsung, on the other hand, has targeted the whole Chinese market. When you say that iPhone will not be sold to 655 million Chinese mobile phone users, it means that a population of the combined size of Mexico, U.S. and Brazil will be excluded.

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Author: usmantech


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