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Apple iPhone Loses Ground in China Smartphone Market, Falls Out of 5th Place

by Todd Haselton | November 8, 2012November 8, 2012 9:30 pm PST

Apple China

Apple’s iPhone is no longer among the top 5 smartphones with the most market share in China, according to a new report published on Thursday. The iPhone was the 5th most popular smartphone in China during the second quarter but is now behind Samsung, Lenovo, Yulong Computer Telecommunication Scientific (also known as Coolpad), ZTE and Huawei. It’s a long fall from the first quarter of this year, when the iPhone was the second most popular smartphone in China.

Coolpad has apparently done well working with two of China’s major wireless carriers. “They are doing especially well from their partnerships with China Telecom and China Mobile this quarter,” Canalys analyst Nicole Peng told IDG News Service. “China Telecom and China Mobile are two of the country’s main telecommunication operators, which together have 850 million mobile customers.” This is the first time Coolpad broke into the top five, and its growth was attributed to its low-end sub-$100 handsets.

“Apple’s iPhone is still very expensive and it kind of limits their expansion in the country, when the target audience of where the growth is coming from is at the low-end,” Peng explained.

Another firm, IDC, said during the second quarter that Apple was struggling to compete because of the high price of its smartphones. At that time, Frost & Sullivan analyst Jayesh Easwaramony told Reuters that Chinese consumers are typically attracted to devices priced around 70% of the average monthly salary. The iPhone, meanwhile, costs more than twice the average salary.

[via IDG News Service]

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...