Nokia Succumbs to Apple Brand in China
Apple's iPhone has moved ahead of Nokia's handset offerings as the preferred choice among Chinese buyers for their next smartphone purchase according to a report by Morgan Stanley.
China is currently Apple's second largest market with revenue increasing from $3 billion in 2010 to $13 billion so far in 2011. Morgan Stanley predicts that China could surpass the United States as their largest market in three years time, adding $30 billion a year in revenue over that time period. Apple's future could be even better as a third of Chinese consumers have expressed interest in purchasing an iPhone, more than twice the interest expressed in Nokia handsets.
In a survey of 2,050 mobile phone users, Apple increased its share of "planned purchases" by six points to 34 percent while Nokia lost 8 points falling to 16 percent of planned purchases. Samsung landed in third place increasing demand by seven percentage points, and HTC grew 14 percentage points taking the 5th place spot. Motorola remained static in 4th place.
The potential upside for Apple is massive in China. If the Chinese consumer sentiment represent in Morgan Stanley's report is true, Apple could very well become far and away the number one smartphone manufacturer for years to come. Apple doesn't even have a deal with China's largest carrier China Mobile who provides service to 600 million+ customers. China Mobile already has 10 million unlocked iPhones running on their network, if Apple can capture 30% of their customer base that is an additional 200 million iPhone owners or more customers than AT&T and Verizon have in the U.S. combined.
The interest in Apple's iPhone has spurred sales in other Apple products as well. Mac, iPad, and iPod touch sales have benefited from an iPhone bump as iPhone users are four times more likely to use Mac's than non iPhone users. Apple and China are poised for a long future in more than just the manufacturing process.
Source: Apple Insider