Apple Inc. Beats Samsung, Xiaomi In China

iphone 8 apple stockElisaRiva / Pixabay

Apple, for the time being, has been able to truly dominate the Chinese smartphone market, outnumbering the likes of Samsung and Xiaomi

Apple bagged the top spot in the Chinese smartphone market for the first time in the fourth quarter, outpacing Samsung and domestic companies such as Xiaomi for the first time, according to Reuters, which cites data firm Canalys. In Asia, the iPhone 6 and iPhone 6 Plus became quite popular after the launch last September even though they are priced toward the high end of the market.

China vital to Apple

“The company is finally riding the large screen and LTE trends in China, which have been vital to its success,” Canalys analysts said. Samsung slipped to the third spot, according to the report. In November, the iPhone maker took the first spot by capturing a 33% market share in South Korea, according to the Hong Kong-based market research firm.

Apple knows the significance of the Chinese market and is making every possible move to retain and grow its sales in the region. Apple CEO Tim Cook visited Foxconn’s factories, a few months ago. At that time, he revealed plans to open 25 brick and mortar stores in the next few years. Cook also mentioned the investments that are being made by Apple in China, which is a fast-emerging market.

Efforts paying off well

Gaining entry into the highly guarded Chinese market has not been easy for Apple. The company had to make numerous efforts to win the trust of lawmakers there. After the allegations that the iPhone is a threat to nationwide security, Cook came out to clarify that the iPhone is no potential threat and even released an official statement suggesting the iPhone does not track user locations.

The Chinese government demanded a full inspection of Apple iPhone, and the company readily agreed to it. Chinese authorities were concerned that any hardware and software integrated in the iPhone that would allow the United States to spy on them. It was also reported that Apple has compromised its software to the information security department of the Chinese government to get on the good side of the local government.

For the last quarter, Apple posted record sales, and much of it could be attributed to its efforts made in China. Sales in China jumped 70% last quarter, and it was the first quarter in which Apple sold more iPhones in China than the U.S.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)

About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at [email protected]

Be the first to comment on "Apple Inc. Beats Samsung, Xiaomi In China"

Leave a comment