China Snubs Apple (AAPL) for Cheaper Smartphone Alternatives
Tweet
Share
E-mailGet Alerts AAPL Hot Sheet
Price: $283.78 +3.14%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Join SI Premium – FREE
Apple (Nasdaq: AAPL) is losing ground in one of the key markets it hoped to dominate as low-cost mobile device manufacturers continue seeing hot sales.
The latest research from Canalys has Apple's market share in China slipping to 5 percent at the end of Q2, from 9 percent in the same period a year earlier. That's the lowest market share recorded for Apple in China since Q410.
Samsung was the de facto leader with 18 percent share. Big competition came from names like Xiaomi Corp., Lenovo, and ZTE Corp, the report statement. While Apple sells its iPhone 5 for 5,288 yuan, Xiaomi is snagging market share by selling its latest device at 799 yuan, or about $130.50.
Apple is expected to release a lower-cost iPhone model later this year, no doubt targeted at emerging markets. But, whether or not that model will sell for $50 or less, or if it will dilute the Apple brand and harm sales of mainstream iPhone models is another question entirely.
One key for Apple might be landing a contract with wireless provider China Mobile (NYSE: CHL). CEO Tim Cook and China Mobile chairman Xi Guohua meet a few weeks back over a potential deal, but details of the discussions weren't leaked. The iPhone is currently carried on China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA).
Shares of Apple are lower in early trading.
The latest research from Canalys has Apple's market share in China slipping to 5 percent at the end of Q2, from 9 percent in the same period a year earlier. That's the lowest market share recorded for Apple in China since Q410.
Samsung was the de facto leader with 18 percent share. Big competition came from names like Xiaomi Corp., Lenovo, and ZTE Corp, the report statement. While Apple sells its iPhone 5 for 5,288 yuan, Xiaomi is snagging market share by selling its latest device at 799 yuan, or about $130.50.
Apple is expected to release a lower-cost iPhone model later this year, no doubt targeted at emerging markets. But, whether or not that model will sell for $50 or less, or if it will dilute the Apple brand and harm sales of mainstream iPhone models is another question entirely.
One key for Apple might be landing a contract with wireless provider China Mobile (NYSE: CHL). CEO Tim Cook and China Mobile chairman Xi Guohua meet a few weeks back over a potential deal, but details of the discussions weren't leaked. The iPhone is currently carried on China Unicom (NYSE: CHU) and China Telecom (NYSE: CHA).
Shares of Apple are lower in early trading.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Apple (AAPL) call put ratio 1.4 calls to 1 put amid share price pull back
- Evercore ISI Reiterates Outperform Rating on Apple (AAPL)
- This is the best U.S. tower stock to own in 2026: Goldman
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
