Apple iPhone is the undisputed emperor when it comes tothe demand formobile phones. There is no denying that it has revolutionized the phenomenon of touch screen technology in cell phones.
Apple has been proving its worth every now and then with its profits and sales records. The best example is itsrecent mind-blowing sales record in the Chinese marketwith revenueshitting$7.9 billion.This has made a big time impact on China’s mobile phone revenues overall.
China to become the smartphone market leader
China with its flourishing smartphone market is all set to become the number one player in mobile phone shares overtaking the U.S. This is owing to some cost-effective and user-friendly phones provided by local firms in the country. Many of these phones are a challenge to iPhone’s supremacy. The latest among them is the M12 (successor of the popular model MiOne from Xiaomi Technology) whose specifications are better than the 4S but is still cost-effective.
According to analysts, though the sales of iPhone 4S will continue to increase in China, its development will still be seen only among a handful of rich citizens of the country. Studies further show thatmobile phones that cost less than $200 made up 40% of mobile phone sales and those that cost $700 made up 11% of the total mobile phone sales in China.
The M12 will go on sale in the month of October for $310. The phone will feature an 8-megapixel camera, a quad-core processor and the voice-assistant feature that can challenge Siri(iPhone’s personal assistant).
A number of Xiaomi supporters argue that they do not want their phones to be luxurious like the iPhone but user-friendly like the M12. Apple releases a single iPhone modeleach yearfor $800. Thisis the two-month income of an average urban Chinese resident who makes up half of China’s population. This is exactly why analysts predict that the real development in Chinese mobile sales revenue lies in inexpensive smartphones.
According to TZ Wong, a Chinese IDC analyst, Apple can never be the leading mobile phone model in China because of two factors – its limited models and its cost.
The Market Share
In the January-March Chinese sales report, Apple ranked secondin smartphone sharesafter Samsung. But this record is estimated to take a downturn by 2016. Gartner and IDC also predict that growth in the smartphone industry would be driven largely by models produced by Lenovo Group, ZTE Corp and other smaller firms like Meizu Technology, Gionee and Xiaomi.
The Meizu mobile phone company offers impressive high-end phones at reasonable prices. Alibaba Group along with Baidu and Shanda Interactive is said to be offering cheaper models with interactive features like water-resistant capabilities. It is also pretty evident that buyers making their first ever smartphone purchase are likely to buyeconomical alternatives. The expensive Samsungs and Appleswould be favored by professionals and the upper class.
So, all is not well with Apple’s market in China. The iPhone has tough competition ahead in spite ofthe release of its much anticipated iPhone 5. Apple will have to fight a lonely battle with a number of low-cost and handy smartphones to make it big.
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