Market share of Apple's iPhone drops to 5%

August 10
6:36 AM 2013

Tim Cook's negotiations with China Mobile must result to a finalized deal soon. Bloomberg reported that findings from the research firm Canalys indicated that Apple's market share in China dropped to just 5% during the second quarter, down from last year's 9%.

The research director of Canalys in China, Nicole Peng, told Bloomberg that Apple is currently being defeated by low-cost Android phones and gadgets. Lenovo, Xiaomi and ZTE all have succeeded in their attempts to attract Apple's customers using their cheap phones that feature decent specifications.

"Apple is only focused on the high-end segment, and China's smartphone market growth right now is coming from the mid- to low-end," Peng stated. "Apple doesn't have any products in the mid- to low-end and that's where Xiaomi has been building their brand awareness."

Apple's combined sales in China, Hong Kong and Taiwan dropped by 14% to US$4.9 billion during the second quarter. Apple was reported to be unwilling to take lower subsidies from China Mobile, which has almost 750 million customers. Analysts said Chinese consumers were satisfied with low-cost Android mobile devices. Therefore, they no longer see Apple's iPhones as a must-have brand.

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