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China: Apple in bad shape

China: Apple in bad shape

While Apple announced the release of its iPhone 4S in China at the end of the year just a few days ago, it would seem that things are getting complicated for the American glove on the biggest market in the world. Reuters reports that the company has left the top podium and that the current situation is not its advantage.

Reuters tells us today that the American glove has lost its third place in the Chinese market, now considered the largest smartphone market in the world. A blow for the American company whose plans for the release of the iPhone 4S appear to be compromised.

In the East, nothing new for market leaders. Nokia retains its first place, and Samsung follows closely. However, with regard to Apple, the situation is a little more critical. The apple company has just lost its third place, delighted by the Huawei group, and has seen its market share decrease with the rise of smaller groups such as the Chinese manufacturer ZTE, or Lenovo. The situation is not catastrophic because the brand retains a large community of fans and many Chinese have expressed their intention to buy the iPhone 4S as well as other Apple products. However, the situation is clearly not favorable for the launch of the iPhone 4S, which was to be launched just after Christmas on the latest news.

According to Reuters, the lack of a partnership with China's phone gloves, such as China Mobile, is expensive for Apple. In addition, Apple’s lack of flexibility in the prices of its devices does not facilitate the export of its products to China, where many competitors display lower prices than in Europe or the United States. For the launch of the iPhone 4S, Apple was supposed to take advantage of the support of the third national operator, but the launch now seems postponed to a later date …

During this year, Apple would have gone from 13.3% to 10.4% market share, making it the second biggest loser after Nokia, going from 36.2 only 26.8%. Analysts say the only solution would be to partner with China Mobile, which is unlikely to be possible until late 2012/2013 due to the infrastructure of the Chinese company.

The smartphone market in China still weighs nearly a billion consumers, but suffers from a very different structure from those encountered in other countries since only 10% of users have 3G. The launch of the iPhone 4S in this market was supposed to allow Apple to get back on track, but the absence of 4G support by the device, the cheaper competition and the lack of support from operators are likely to give results rather dcevants. Remain therefore present to see how Apple will react, and if the glove will go so far as to design smartphones specially designed for the Chinese market, or will be satisfied with its fourth place for a few more years …

Source: Reuters

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