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China Gen-Z sees Apple's products a must to save face

Chinese university students demand 3-piece Apple gadgets; iPhone, Ipad and Mac from their parents as a MUST-have gift, otherwise they are losing face to their peers in university.

Apple’s weak distribution networks in China and stiff price may be reasons for losing share market in China.

IDC: Apple’s China iPhone almost halves in Q2

Summary: Apple’s mobile market share in China has dropped by almost half, while Lenovo saw its share rocket. Is China still a tough cookie for Apple to crack?

By Zack Whittaker for Between the Lines | August 24, 2012 — 07:52 GMT (15:52 SGT)

Apple’s mobile market share in China has almost halved to 10 percent in the second-quarter, according to figures released by research firm IDC today.

The numbers suggest that soon-to-be and existing Apple customers are waiting for the next iPhone, expected in September, or jumped ship entirely in favor of rival smartphones.

Enter Lenovo, which managed to knock Apple off its second place perch to fourth place in the world’s largest market, despite smartphones overtaking feature phones for the first time during the April–June period.

China-based Lenovo, currently the world’s second-largest PC maker — though soon to be the market leader in a matter of weeks — managed to snap 11 percent in China during the second quarter. While its share only increased by a single point in the first quarter, Lenovo rocketed ahead of Apple during the following quarter.

Lenovo now stands at 11 percent of the China mobile market share, up one point on fourth-place Apple.

China-based ZTE is currently in third place, while and Huawei stands in fifth place.

Make room for Samsung, retaining its vast lead on the rest of the market, with a share of 19 percent. However, Samsung’s losses widened as it dropped by 2 percent on the previous quarter.

IDC said smartphone shipments in China totalled 44 million devices in the second quarter, pegging around 51 percent of the country’s overall 87 million mobile shipments, the research firm said.

UBS analyst Steven Milunovich said earlier this week that most of China’s sales of the iPhone 4S can be mostly attributed to “seasonality,” notably the long-awaited iPhone 5, which is expected to make an appearance next month.

But Apple’s market penetration isn’t what it could be. The Cupertino, CA.-based technology giant has roughly one retail store per 216 million Chinese citizens — or six stores for a population of around 1.3 billion people — despite Cupertino saying it would have at least 25 stores in China by the end of this year. Half the argument could be that Apple simply isn’t visible enough on the main street.

The nkkhoo.com comment board with Facebook account.
Stone Cold says:

4,000 workers at Foxconn’s Zhengzhou factory reportedly walked off the job on Friday in protest of the stricter quality-control requirements for Apple’s iPhone 5 assembly line.

Apple denied workers holiday on the China golden week holiday.
Worker exploitation to meet iPhone 5 production?

nkkhoo says:

At least these China workers are paid minimum wages of RM 1000 unlike workers in Malaysia.

I see exploitation is more obvious here.

Ras says:

Malaysian workers have poor attitude.

Don Anamalai says:

Many worshipped Steve Job as an ‘innovator’ without realising that he has no patent to show.

Steve Job capitalising on Steve Wozniak’s technical ability to produce Apple 2 where they actually copied Xerox idea to design mouse and interface.

Every innovative company started out as an imitator.
Apple is no different.
Now it is the turn of Samsung who will beat apple in years to come.

Frenz says:

We should boycott Apple products. Apple is a big bully.
It dare not fight Samsung in market place, but choose to do it in court.

nkkhoo says:

Do you want your IP steal by others? The author of my technical article was “renamed” by Chinese people without my permission.