Apple's iPhone Falls to No. 7 in China
We have a better idea of why Apple CEO Tim Cook recently returned to China and visited with leadership from the largest mobile carrier in the world - China Mobile.
As it turns out, Apple's iPhone isn't growing as fast as it would prefer inside of the world's most populous mobile market. In fact, the trend appears to suggest the opposite. And that lends an unfortunate financial disadvantage to Apple. After all, 33 percent of all worldwide smartphone shipments end up in China.
Falling from 5th place, the iPhone finished in 7th for the second quarter of 2013 inside of the lucrative Chinese market. In China today, Apple's market share sits at just 4.8%. Samsung, Lenovo, Yulong, ZTE, Huawei, and Xiaomi all captured larger market shares in China than Apple.
"The high end of the market continues to grow but there is no doubt that the explosive growth will come from the low end of the market,’ Chris Jones, VP and principal analyst for Canalys, said in a statement. “Apple needs to respond to this dynamic and it is evident from the performance of its older models this quarter that there is real demand for a new low-cost iPhone. The challenge that it faces is maintaining high margins on arguably the most important products in its portfolio.”
Apple's response to the bad news out of China?
“In the arc of time, China is a huge opportunity. I don’t get discouraged over a 90-day cycle,” says Tim Cook.