Apple iPhone had a 5% market share in China during Q2, down from 9% in the prior quarter

Apple iPhone had a 5% market share in China during Q2, down from 9% in the prior quarter
The Apple iPhone is beginning to lose market share in China. According to Nicole Peng, research director of Canalys, Apple's iconic smartphone made up 5% of all smartphones shipped to the country during the second quarter. That was down from the 9% share of the market that the iPhone had in the first quarter. According to Canalys, the 5% share is the lowest owned by Apple in China since the fourth quarter of 2010.

Samsung currently is on top with an 18% share of smartphones shipped to China. And thanks to carriers like China Unicom promoting domestic entry-level models, vendors like ZTE and Lenovo are holding a bigger percentage of the market than Apple is. In fact, Beijing based Xiaomi's shipments in Q2 were just enough to outpace the iPhone and move the company to sixth place, up two notches year-over-year.

Research Director Peng says that the problem with Apple right now is that it is mismatched in China. Demand in the country is for low-to-mid range models which is Xiami's bread and butter. It also explains Apple's desire to get the low-cost Apple iPhone 5C out as soon as possible. Unfortunately for Apple, many see the low-cost iPhone priced at $300 to $400 which is still too high to compete, leaving Apple right back where it started from. Meanwhile, Xiaomi is expected to double its smartphone shipments this year to 15 million units from 7.2 million last year. CEO Lei Jun says he is not focused on overtaking Apple, concentrating instead on running a "a small and beautiful company".

After Samsung's 18% of smartphone shipments in China for Q2, Lenovo is next with 12%. Coolpad, ZTE and Huawei complete the top five. Apple could get quite a jump if it could work out a deal with China Mobile. The world's largest carrier does not offer a branded version of the Apple iPhone. Each of the top five smartphone vendors in China has a deal with China Mobile which gives them access to 740 million subscribers. Of course, price is a big factor and could be holding Apple back. In China, the Apple iPhone 5 goes for 5288 yuan ($864 USD) while a new model from Xiaomi to launch this quarter will be priced at 799 yuan ($130 USD).

source: Bloomberg

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1. CX3NT3_713

Posts: 2363; Member since: Apr 18, 2011

Lol @ "down from from "

2. mariosuneo4

Posts: 75; Member since: Aug 07, 2013

this share is still better than Windows Phone :D

7. RoyalPayne

Posts: 458; Member since: Aug 07, 2013

Windows Phone doesn't have the luxury of multiple OEMs right now. Nor does it have multiple platforms, like phablets, tablets, gaming devices or media players to back on, yet. Let's not forget this is the same company that beat Apple in OS and Sony with X360. Not to say they haven't failed (read: Zune), but when MS sticks to something, by god they do it right. In time.

9. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

They don't have the luxury of multiple OEMs? Nokia, Samsung, and HTC sound like more than one.

11. RoyalPayne

Posts: 458; Member since: Aug 07, 2013

ZTE and Huawei are also there AFAIK. But my point being Nokia is the only one pushing out hardware. Compare the number of HTC and Samsungs Android phones to WP8. Compare their Android flagships to WP8 flagships. Now add LG, Sony, Motorola, etc, etc, etc.

13. ollienightly

Posts: 37; Member since: Jul 23, 2013

Actually no, I haven't spotted a single store offering non-nokia WP phones. So quit making things up.

17. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

HTC had some phones on Verizon, the Titan series. And Samsung had I believe their ATIV phones for windows. Nothing is made up, it's a fact. The difference is MS is doing what Google is trying hard not to, show favoritism towards one of their OEMs. They are constantly giving Nokia money, and they seem to be setting them up as the one you want to buy. But Nokia didn't start making WP until about a year after it released, and HTC & Samsung made the first batch while Nokia was getting it's stuff together. Have HTC & Samsung dialed back their WP output? Yes, because with Nokia getting the lionshare of WP sales (not to mention support from MS) it doesnt male sense to keep throwing money into a pit. If MS had tried to keep all three on equal ground, they might still have multiple OEMs. That's what happens when you back one partner more than another.

18. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

I decided to do a little digging, and here's what I found. These are only from WP7 and newer. Samsung: 9 phones (Focus, Omnia, & ATIV series) 4 tablets (ATIV series) HTC: 7 phones (HD7S, Trophy, Titan I & II, 8s, 8x, & 8xt) Huawei: 2 phones (4Afrika & Ascend W1) ZTE: 3 phones (Render, Orbit, & Tania) Lenove, Asus, & I believe HP make WP tablets as well. Now the number of WP models compared to what they offer for Android is small, but that's what's selling right now. A big difference is Nokia is locked into WP, so they have nothing to fall back on. But for the other OEMs, if WP isn't showing substantial growth, what's the benefit to offer a wide range of products for it? And again with MS's support of Nokia, they'll never be better than #2. But to say that no one else is offering any WP devices besides Nokia is incorrect. I got this info from here on Phonearena. Check it yourself if you want. Now if WP really gains traction, OEMs will start producing more devices. But when android started, HTC was the only one producing phones. It wasn't until the OG Droid ( and to an extent the Droid Eris) started selling on Verizon as an iphone alternative did others jump on the bandwagon. So until WP takes off, this is the reality. These companies aren't going to go bankrupt simply to support another OS.

14. ollienightly

Posts: 37; Member since: Jul 23, 2013

And nokia is the only one pushing WP to carriers. HTC Sammy Huawei are all pushing their Android parts.

16. JJSantoro

Posts: 1; Member since: Aug 10, 2013

Microsoft hasn't beat Sony at anything. Every summer Microsoft gives away 360's when you buy a laptop with the going back to school sales. Hence Microsoft hasn't sold 77 million 360's. Sony on the other hand has and don't forget the PS1 sold 100+ million the PS2 sold more than 130+ million. Again Microsoft hasn't beat Sony at anything. They did beat Apple in the Computer World.

3. amiaq

Posts: 509; Member since: Jun 30, 2012

just stay in the USA apple, your iphone sucks!! I dig your MacBook Air though!!

4. Eonnaydra

Posts: 217; Member since: Oct 23, 2012

Is something normal to lose share as long as the China's market is growing very quickly and don't forget that iPhone 5 is almost 1 year old phone.

15. ollienightly

Posts: 37; Member since: Jul 23, 2013

No, it's not normal considering it's almost halved in just 3 months. And it's neither their first quarter nor right before new product announcement.

5. Akfred

Posts: 76; Member since: Nov 08, 2012

Windows phone is actually coming up too, like in my country The Lumia series is outspacing iphone and blackberry

6. RoyalPayne

Posts: 458; Member since: Aug 07, 2013

The land of narnia?

10. Mirosti

Posts: 9; Member since: May 08, 2013

In Finland WP has 35% of the market. And many other countries it has been growing a lot!

12. RoyalPayne

Posts: 458; Member since: Aug 07, 2013

Glad atleast 35% of people in Finland have good taste!

8. Googler

Posts: 813; Member since: Jun 10, 2013

So what Apple is going to do is offer them a more cheaply made (materials) phone that is still more expensive than their own countries offerings, and Cook thinks this is a great strategy for China. I'm willing to be they sell more 5C's in the US than China, which could further cannibalize the regular iPhone sales like the iPad Mini did to the regular iPad.

19. mas11

Posts: 1034; Member since: Mar 30, 2012

"made up 5% of all smartphones shipped to the country" I'm confused, aren't I phones made there?

20. dekay84

Posts: 5; Member since: Feb 27, 2012

ur right. its like selling air... though i think actually purified air might actually sell in china, moreso than overpriced smartphones.

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