Apple has bigger designs on the biggest smartphone market in the world.
New iPhones could help Apple catch up with Samsung in China -- Samsung is
now the single largest smartphone player in that market -- if two likely
scenarios happen.
First, Apple announces a lower-cost iPhone, rumored to be the 5C. That
would provide a better match for China's price-sensitive consumers.
Second, Apple cuts a deal with China Mobile, the biggest carrier in the
largest smartphone market in the world.
Apple's growth in China has been stunted, in part, because it hasn't been
able to strike a deal with China Mobile and its 740 million subscribers. (Apple
lost market share in China last quarter.) Talks continue -- Apple CEO Tim Cook
met with China Mobile Chairman Xi Guohua in July -- but nothing definitive has
been announced.
Apple, however, could be in a better position this time to move forward
with China Mobile.Reports out of Asia speculate that Apple's new phones will
better support China Mobile's 3G/4G network standards.
UBS forecasts that Apple could sell 17 million iPhones through China Mobile
next year, with the bulk of those expected to be the 5C. That's about 10 percent
of UBS' projected total iPhone sales, according to the Financial Times.
And things may be looking up with Apple's current partners in China, China
Telecom and China Unicom. A recent report from Ifanr -- citing an unnamed source
-- claimed that the iPhone 5Sand 5C have been certified by China's Ministry of
Industry and Information Technology and that China Telecom and China Unicom will
release the two models in September, earlier than a previously reported November
release date.
That's all just rumor, of course, but it may indicate that Apple will be
faster at releasing new iPhones in China this time around.
While all of the above is potentially good news for Apple, Samsung shipped
72.4 million smartphones worldwide in the second quarter compared with Apple's
31.2 million global shipments, according to IDC.
A nontrivial chunk of those Samsung shipments happened in China, where the
company is estimated to hold 19 percent of the market, about 10 percentage
points more than Apple.
Apple's revenue in the most recent reported quarter fell 14 percent year
over year in Greater China, which includes Taiwan and Hong Kong.
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