Friday, August 24, 2012

Apple Inc. (NASDAQ:AAPL)’s Share in China Smartphone Market Reduced to Half in Q2

As per information submitted by IDC, an industry research firm, Apple Inc. (NASDAQ:AAPL)’s share of smartphone market in China has reduced to almost half to 10% in the months April and June. Apparently users were waiting for the upcoming iPhone model that was expected to launch later this year. Some users simply switched to other brands.  

Chinese smartphone market is the second largest market for Apple. It is all set to overtake the US as the world’s biggest smartphone market this year. The demand driven by modest handset subsidies that are proposed by three major carriers, more feature-rich products and increasingly tech-savvy customers is likely to help China grow its smartphone market.

it has happened for the first time that smartphone shipments in China has overtaken feature phones in the second quarter.IDC data reveals that local brands like ZTE Corp. and Lenovo Group Ltd. pushing Apple down to the 4th place from the 2nd.

Total smartphone consignments increased to 44 million. This accounts for about 51% of China’s entire mobile shipments of 87 million.

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In reference to Apple’s drop in market shares and ranking, TZ Wong, an analyst at IDC has said that there are two things in play. One is that people know a phone is getting launched and another is that substitutes are becoming more appealing.

Samsung has retained its domination in the Chinese smartphone market with a share of 19%. However, this figure was 21% in the previous quarter.

As per the data presented by Gartner, another research company, Apple’s market share shot down to 12% in the second quarter from a figure of 17% in the last three months. In spite of this, Apple had maintained its 2nd ranking.

Wong has mention that it was expected that Chinese brands would eventually gain more share due to their aggressive marketing and intimate ties with local carriers like China Telecom, China Mobile and China Unicom. 

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