Apple's (AAPL) Tablet Share in China Nearly Halved as Sentiment Shifts
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Apple (Nasdaq: AAPL) is seeing lower tablet shipments to China, one of its key growth markets, as competitors step up offerings and price them competitively.
According to Bloomberg, citing data from IDC, Apple controlled just 28 percent of China's tablet market in Q2, from 49 percent a year earlier. Samsung took second with 11 percent, Lenovo third at 8 percent, and half of shipments were made by producers with less than 1 percent of total market share.
Most producers are utilizing Google (Nasdaq: GOOG) Android, which is a free platform and the most popular operating system globally.
One analyst noted that Apple is no longer the "must have" product it once was. While consumers would skip lunch to go buy an iPad in the past, saturation and more price-conscious consumers have all but eliminated that edge.
Apple introduced the iPad mini late last year and the device turned out to be successful in China and other East Asia markets. Whether Apple will be able to strike the same gold with its next-generation iPad is a good question. Despite the price being just over $300, competitors are offering Android-based tablets at one-third that cost.
Next month, Apple is hoping to regain prominence in China with the debut of a lower-cost iPhone. Should the sentiment towards Apple continue, the cheaper iPhone might not turn out to be the game-changer than many expect it to be.
Shares of Apple are up about 1.1 percent Wednesday.
According to Bloomberg, citing data from IDC, Apple controlled just 28 percent of China's tablet market in Q2, from 49 percent a year earlier. Samsung took second with 11 percent, Lenovo third at 8 percent, and half of shipments were made by producers with less than 1 percent of total market share.
Most producers are utilizing Google (Nasdaq: GOOG) Android, which is a free platform and the most popular operating system globally.
One analyst noted that Apple is no longer the "must have" product it once was. While consumers would skip lunch to go buy an iPad in the past, saturation and more price-conscious consumers have all but eliminated that edge.
Apple introduced the iPad mini late last year and the device turned out to be successful in China and other East Asia markets. Whether Apple will be able to strike the same gold with its next-generation iPad is a good question. Despite the price being just over $300, competitors are offering Android-based tablets at one-third that cost.
Next month, Apple is hoping to regain prominence in China with the debut of a lower-cost iPhone. Should the sentiment towards Apple continue, the cheaper iPhone might not turn out to be the game-changer than many expect it to be.
Shares of Apple are up about 1.1 percent Wednesday.
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