Apple Becomes China's Fifth-Largest Smartphone Vendor in Q4 2013

Discussion in 'iOS Blog Discussion' started by MacRumors, Feb 19, 2014.

  1. macrumors bot

    MacRumors

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    #1
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    According to a new report from market research firm IDC (via The Wall Street Journal), Apple became China's fifth largest smartphone manufacturer during the fourth quarter of 2013, taking 7% of total market share in the country. Notably, the report does not include iPhone sales numbers from the region's largest carrier China Mobile, which began selling the iPhone through a partnership with Apple last month.
    Apple is still behind other smartphone vendors in the country including Samsung, Lenovo, and Huawei, with those companies coming in at first, second, and fourth place, respectively. Apple also remained slightly ahead of newcomer Xiaomi, which notably hired former Google vice president of product management Hugo Barra in August 2013.

    Apple has made strides towards improving its presence in China over the past few years, opening new Apple Stores in populated regions and establishing an official store on Chinese e-commerce site Tmall in addition to partnering with China Mobile. CEO Tim Cook has also visited the country numerous times throughout the past few years to meet with both China Mobile executives and government officials to discuss market growth.

    Article Link: Apple Becomes China's Fifth-Largest Smartphone Vendor in Q4 2013
     
  2. macrumors 68040

    the8thark

    Joined:
    Apr 18, 2011
    #2
    Give chinese higher wages and more of them can buy iPhones. But higher wages means less people would be working at foxconn so less iPhones are made and less chinese would be able to buy iPhones because of less supply.

    The iPhone paradox in motion.
     
  3. macrumors demi-god

    kdarling

    Joined:
    Jun 9, 2007
    Location:
    Device engineer 30+ yrs, touchscreens 24+.
    #3
    Personal income is not really that important. It's all about the upfront price.

    Around the world, people, rich or poor, tend to be willing to pay up to about $250 upfront.

    Thus, where devices are not subsidized, people tend to choose a phone with the best features that they can get for that price. As historical data shows, high end iPhones don't sell well at all in such markets, as they're overpriced.

    However, the iPhone is subsidized down to "free" in China, which is going to help its sales a lot. As seen in the USA and Japan, when upfront costs are similar, people often choose the iPhone.

    Anyway, here's the data in pie chart form. I find it easier to visualize this way:

    2013q4_china_sales.png
     
  4. macrumors 68020

    smithrh

    Joined:
    Feb 28, 2009
    #4
    Vendor != Manufacturer.

    Article needs to be consistent (and correct).

    Which is it?
     
  5. macrumors 6502

    512ke

    Joined:
    Sep 10, 2003
    #5
    If Apple is gaining share, a question becomes, who is losing share in China?
     
  6. macrumors G5

    gnasher729

    Joined:
    Nov 25, 2005
    #6
    If Apple is going from 6% to 7%, nobody is really affected by that. The others are much more affected by fluctuations within the 93% than by the 1% that went to Apple.
     
  7. macrumors 68000

    powers74

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    At the bend in the river
  8. macrumors member

    axonic labs

    Joined:
    Feb 28, 2007
    #8
    Notably, this report is useless.
     
  9. macrumors newbie

    Joined:
    Feb 18, 2014
    #9
    Hopefully Huaweii. They deserve bankruptcy and more. If you're wondering why, check out their phones on their site, and check out their past legal problems with Cisco.
     
  10. macrumors 68030

    macs4nw

    #10
    It will be interesting to see how the joining of China Mobile as a selling partner, is going to affect the next couple of quarters…..
     
  11. macrumors regular

    Joined:
    Jul 25, 2011
    #11
    We have 13 billion people... no need to worry...
     
  12. macrumors member

    Joined:
    Feb 21, 2006
    #12
    The phone subsidy works in a very different way in China. They let you pay the full cost of the phone upfront and then they give you a portion of it back every month for a year or two. You have to choose a tariff exceeding the monthly "subsidy", but you end up paying less for the service every month. So over the 2 years they give you a total discount on their service equaling the device's upfront cost. You have to shell out the full price on day one though.

    I don't quite understand why this model is in place - is it utter distrust of the customer (get a subsidized phone, run away, sell it off for profit, never be seen again), or are the network companies opposed to bankrolling their customers, effectively running a consumer lending business like western carriers do?
     
  13. macrumors 6502a

    Joined:
    Aug 16, 2010
    Location:
    Canada
    #13
    China has a lot of domestic cell phone manufacturers - brands were hear about here like Xiaomi.


    Probably a bit of both - financing and lending are sort of new concepts in China, legal frameworks not as strong in China. Also, there is a cultural factor too - China has one of the highest savings rates in the world... most Chinese/Asians like to pay for things up front and don't like to carry debt.
     

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