Samsung topped Apple, Lenovo in China's smartphone market for 2012

Posted:
in iPhone edited January 2014
Chief Apple rival Samsung tripled its Chinese smartphone sales in 2012, taking the top spot ahead of Lenovo and Apple in the increasingly important Chinese market.

gs3 v iphone5


Yonhap News reported (via The Next Web) Sunday on a new analysis out from Strategy Analytics. That report had Samsung selling 30.06 million smartphones in China, nearly three times the 10.90 million units it sold in 2011. That total gave Samsung control of 17.7 percent of the Chinese market, solidly ahead of its competitors.

Chinese tech firm Lenovo took second place, with 13.2 percent of the market, while Apple came in third place with 11 percent. Chinese manufacturers Huawei and Coolpad trailed with 9.9 and 9.7 percent, respectively. Nokia dropped from 29.9 percent and a number one ranking in the country in 2011 to 3.7 percent and a seventh-place spot in 2012.

The newest report marks the first time that Samsung has taken the top spot in the Chinese market. Industry observers cite both Samsung's efforts at working with Chinese carriers and the company's growing brand recognition as drivers of its improved position.

China has quickly emerged as one of the most important markets for consumer electronics in general and smartphones in particular. In February, research firm Flurry estimated that China surpassed the United States in terms of total smartphone activations.

Apple has been looking to address the Chinese market, but the company has taken a cautious approach to doing so in order to maintain the quality users expect from its products, as well as its usual profit margins.

While the typical Chinese worker is probably unable to afford Apple products, the company has introduced installment plans on some devices. Investors and analysts, though, still clamor for Apple to release a low-cost iPhone in order to better capture the market.

Apple CEO Tim Cook has also visited China multiple times in the past year, most recently meeting with China Mobile in order to discuss ways to bring the iPhone to the world's largest carrier.
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Comments

  • Reply 1 of 45
    The article fails to see the big picture. Apple still has 11% of China's market without access to China Mobile...

    A low end phone w/ China Mobile deal could end up boosting apple upwards of 20%+.
  • Reply 2 of 45


    How is that the big picture?  If anything you fail to see the big picture--the article focuses on the big picture just fine.  Jeez, I'm a long time lurker, but I had to register to comment on how dumb your comment was!

  • Reply 3 of 45


    If the rumors about the new Galaxy S4 are true, and they decide to sell it at $499, then Apple will be in serious trouble in China. No one will pay $649 for an iPhone when they can get the S4 for $499. Only the Apple fans and the rich folk that don't care about spending money will spend the extra $150.


     


    If the Galaxy S4 is announced at $499, take your money out of Apple stock ASAP! Atleast until just before the 5S gets announced.

  • Reply 4 of 45
    jungmarkjungmark Posts: 6,687member
    What's the profit share? Apple isn't on the #1 carrier in China yet.
  • Reply 5 of 45
    tcaseytcasey Posts: 199member


    Why...where does your proof come from...

  • Reply 6 of 45
    archarch Posts: 66member


    In China, India and many other countries most of Samsung's and other Android phone manufacturer's sales come from low end devices. They have plenty of models in $100-300 price range. Some barely even qualify as 'smartphones'.

     

  • Reply 7 of 45
    tommcintommcin Posts: 108member
    People can may numbers say anything they want. This article seems to be based on sales or the number sold, not the income from the sales.

    Given the security problems on the Droids and the recent reports of hacks originating from China, this win may not be worth as much as expected.
  • Reply 8 of 45
    drblankdrblank Posts: 3,383member

    Quote:

    Originally Posted by mrrodriguez View Post


    If the rumors about the new Galaxy S4 are true, and they decide to sell it at $499, then Apple will be in serious trouble in China. No one will pay $649 for an iPhone when they can get the S4 for $499. Only the Apple fans and the rich folk that don't care about spending money will spend the extra $150.


     


    If the Galaxy S4 is announced at $499, take your money out of Apple stock ASAP! Atleast until just before the 5S gets announced.



    Where did $499 come from?  The S3 retail list price is $699 for the 16GB unlocked model.  I don't know how Samsung can sell an unlocked 16GB for $499 and make a dime doing so, because they would have to sell it to the dealers for about $375.


     


    I don't know why people seem to know the price of an unannounced product.

  • Reply 9 of 45

    Quote:

    Originally Posted by drblank View Post


    Where did $499 come from?  The S3 retail list price is $699 for the 16GB unlocked model.  I don't know how Samsung can sell an unlocked 16GB for $499 and make a dime doing so, because they would have to sell it to the dealers for about $375.


     


    I don't know why people seem to know the price of an unannounced product.



    If LG can sell the nexus 4 8gb for 299.99 I think it is possible 

  • Reply 10 of 45
    wakkowakko Posts: 5member
    Leave it to a Korean news agency to toot the victory of Samsung, but the real question is how much of a profit share Apple has.

    There's no doubt that China is the most significant smartphone market on earth right now. But as it has gone in the US, I wouldn't be surprised if Apple had a #2 or #3 position in units sold, but a commanding lead in the profit share.
  • Reply 11 of 45
    taosbobtaosbob Posts: 20member
    I am shocked that AI bothered to reprint and treat as legitimate material from Yonhap News gathered by Strategy Analytics. As many readers, including me, will quickly recall, Strategy Analytics for years had seemec to be be functioning practically as a branch of Samsung PR, putting out huge sales and market share edtimates of Samsung mobike devices that can never be checked against reality, because Samsung refuses to release official unit sales figures.
    Now why, you ask, would the supposed global and China national smart phone leader apparently fear releasing unit numbers for which, like Apple, it could be held legally accountable? Could it be that the edtimates put out by the likes of Strategy Analytics have become so inflated that there is no way for Samsung to tell the truth without suffering massive embarrassment and a share crash?
    Note that Srategy Anslytics had no legal requirement for honesty and that they do not disclose their client list..
  • Reply 12 of 45
    poksipoksi Posts: 481member


    The "profit" marketing logic will cost Apple dearly at the end. Currently iOS still enjoys advantage in software development and sales, but with solely leaning on profits thus neglecting the quantities and user base will shrink the software developers effort and make iOS a niche product like OS X.


     


    Apple could announce its willingness to take more share and falling profits will not be taken as sign of weakness, since the profits are abnormally high anyway...


    However, if profits only shake a little with current business model, everyone claims Apple is dead and so on....Like we've seen in last few months...


     


    If Apple wants to stay mainstream mobile brand, they need 2 things: mid-range model, the true one, not old models of premium, so users can believe long term dedication and buy such handsets with confidence and bigger screen phone to simply satisfy demand in a real part of the market which grows the most and is here to stay.

  • Reply 13 of 45
    philboogiephilboogie Posts: 7,438member
    If the rumors about the new Galaxy S4 are true, and they decide to sell it at $499, then Apple will be in serious trouble in China.

    Why wuld Apple be in serious trouble if their competitor is going to sell a phone for $499? Never has been a problem before.
    No one will pay $649 for an iPhone when they can get the S4 for $499. Only the Apple fans and the rich folk

    So Apple fans aren't rich?
    that don't care about spending money will spend the extra $150.

    I'm sure everyone cares about spending money, now more than ever.
    If the Galaxy S4 is announced at $499, take your money out of Apple stock ASAP! Atleast until just before the 5S gets announced.

    Should people keep their AAPL if Samsung announces it for less than $499? I am completely failing to see the reason for selling your stock based on the price of a competing device, while having so many more products and services. Besides, it's all in the software, for which I gladly pay a hypothetical extra $150. To put it in another way, if Samsung made the exact same phone (hardware) but were to sell it for $499 with Android on it I'd buy Apple's with their iOS.
  • Reply 14 of 45
    poksipoksi Posts: 481member


    Without mid-range and bigger screen model Apple will loose market share further, because the real growth remains now more or less on the market where premium phones don't contribute to premium market share. Falling market share is bad news for developers and then also for Apple. Arrogance is a bad thing...

  • Reply 15 of 45
    drblankdrblank Posts: 3,383member

    Quote:

    Originally Posted by Apple v. Samsung View Post


    If LG can sell the nexus 4 8gb for 299.99 I think it is possible 



    First off Google only sold about 1 million units, and I'm sure they didn't make much money off those things.  The thing ended up being another POS with a crappy camera, 8G is a low end model, and it doesn't support 4G/LTE, and it kind of bombed in the market because they really didn't make many of them.  The probably sold it at around what LG charged them to make the darn thing.   Google doesn't make much on their hardware because they are trying to "BUY" market share so they can make money from the Google Play as well as ad clicks, etc.  And what does Google pay LG for the thing?

  • Reply 16 of 45
    drblankdrblank Posts: 3,383member

    Quote:

    Originally Posted by PhilBoogie View Post





    Why wuld Apple be in serious trouble if their competitor is going to sell a phone for $499? Never has been a problem before.

    So Apple fans aren't rich?

    I'm sure everyone cares about spending money, now more than ever.

    Should people keep their AAPL if Samsung announces it for less than $499? I am completely failing to see the reason for selling your stock based on the price of a competing device, while having so many more products and services. Besides, it's all in the software, for which I gladly pay a hypothetical extra $150. To put it in another way, if Samsung made the exact same phone (hardware) but were to sell it for $499 with Android on it I'd buy Apple's with their iOS.


    I wouldn't get fixated on a $499 list price for a 16G model that's unlocked.  I think that it's just going to replace the SIII at that price point while they drop the price of the SIII, etc. etc.

  • Reply 17 of 45
    pedromartinspedromartins Posts: 1,333member

    Quote:

    Originally Posted by mrrodriguez View Post


    If the rumors about the new Galaxy S4 are true, and they decide to sell it at $499, then Apple will be in serious trouble in China. No one will pay $649 for an iPhone when they can get the S4 for $499. Only the Apple fans and the rich folk that don't care about spending money will spend the extra $150.


     


    If the Galaxy S4 is announced at $499, take your money out of Apple stock ASAP! Atleast until just before the 5S gets announced.



    you are forgetting that Apple fans = 90% of the worlds population. Those with enough money will buy it because despite being expensive, is a much better product on every single rational metric.

  • Reply 18 of 45
    tooltalktooltalk Posts: 766member

    Quote:

    Originally Posted by Satalite View Post



    The article fails to see the big picture. Apple still has 11% of China's market without access to China Mobile...



    A low end phone w/ China Mobile deal could end up boosting apple upwards of 20%+.


     


    Apple has 11% of China's market, because of the operator subsidies.  Didn't Unicom pretty much give away free iPhone 4's a couple of years back?


     


  • Reply 19 of 45
    robogoborobogobo Posts: 378member
    What's Chinese for shipped does not equal sold?
  • Reply 20 of 45

    Quote:

    Originally Posted by PhilBoogie View Post





     


     Oh nice the pick apart a post piece by piece game, I'll play


     


     


    Quote:


     

    Why wuld Apple be in serious trouble if their competitor is going to sell a phone for $499? Never has been a problem before.

     


    It already is a problem, or else they would be number 1 in China. Apple isn't even number 2. If Samsung is selling so well at the current price point, then a $499 price point would simply destroy any chance Apple has of breaking the Chinese market.


     


     


    Quote:


     


    So Apple fans aren't rich?

     


    Unnecessary comment to fill space on a reply defending Apple's loser status in China


     


     


    Quote:


     


    I'm sure everyone cares about spending money, now more than ever.

     


    Right, I'm sure the people that bought the I AM RICH app cared about spending money image


     


     


    Quote:


     


    Should people keep their AAPL if Samsung announces it for less than $499? I am completely failing to see the reason for selling your stock based on the price of a competing device, while having so many more products and services. Besides, it's all in the software, for which I gladly pay a hypothetical extra $150. To put it in another way, if Samsung made the exact same phone (hardware) but were to sell it for $499 with Android on it I'd buy Apple's with their iOS.


     


    Unfortunately share price isn't dictated by how a small few think, but by expectations of a company. A brand new phone for $499 vs a 6 month old phone for $649. Let's keep it realistic now...

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