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Apple's iPhone loses ground in 'urban China' for first time since 2014 - report

Apple's smartphone marketshare in "urban China" dropped 3.2 percentage points year-over-year during the spring quarter of 2016 — marking the company's first such decline in the region since August 2014, according to research data published on Wednesday.

Some sales were ceded to local giant Huawei, which reclaimed the top spot in the Chinese market with a 24.4 percent share, said analytics firm Kantar Worldpanel. Two other local brands — Meizu and Oppo — also grew, each taking an approximate 6 percent share. Apple held second place with 22.2 percent.

It's not immediately clear what the research group means by the term "urban China," but Kantar nevertheless suggested that the iPhone SE, which shipped in China on March 31, could potentially revive Apple's fortunes.

"There are also significant numbers of potential buyers, particularly in China, who may not be able to afford the high price of a flagship iPhone but may find that the iPhone SE lets them take their first step into the Apple ecosystem," the firm wrote.

The SE is still an expensive proposition for many Chinese — starting at 3,288 yuan, or roughly $507 — but substantially cheaper than an iPhone 6s, which costs at least 5,288 yuan, or $815.

For Apple maintaining Chinese marketshare is crucial. Assuming sales persist, the region is poised to eclipse the Americas in terms of revenue.



28 Comments

volcan 10 Years · 1799 comments

Both Android and iOS are getting mature at this point and there are very few differences in user experience unless you are already part of the Apple ecosystem, have other Apple devices or friends with Apple devices who you communicate with regularly. Aside from the superiority of Facetime and iMessage, I imagine both platforms are probably about the same from a software perspective, although one big advantage for iOS is the security of the App Store and the ease of OS updates. Clearly, Apple devices are second to none in build quality and are more of a status symbol, which is important to some, but if Android is a lot cheaper and the usability is almost as good, I can see why budget conscious buyers might be attracted to Android phones. Also, at the moment, China is in a slight down turn economically, so that may be a factor as well.

Personally, I love FaceTime audio. So much better than regular phone calls. Same with iMessage. 

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magman1979 11 Years · 1301 comments

volcan said:
Both Android and iOS are getting mature at this point and there are very few differences in user experience unless you are already part of the Apple ecosystem, have other Apple devices or friends with Apple devices who you communicate with regularly. Aside from the superiority of Facetime and iMessage, I imagine both platforms are probably about the same from a software perspective, although one big advantage for iOS is the security of the App Store and the ease of OS updates. Clearly, Apple devices are second to none in build quality and are more of a status symbol, which is important to some, but if Android is a lot cheaper and the usability is almost as good, I can see why budget conscious buyers might be attracted to Android phones. Also, at the moment, China is in a slight down turn economically, so that may be a factor as well.

Personally, I love FaceTime audio. So much better than regular phone calls. Same with iMessage. 

If you believe even HALF of what you just wrote there, you're not in touch with reality, and have no real grasp about the massive fundamental differences between iOS, and that garbage called Android.

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chasm 10 Years · 3629 comments

sog35 said:
There is still a huge gap between an iPhone and a $100-$300 cheap Android.

iPhone units are down because the iPhone6 cycle was a one time event. Massive multi-year pent up demand for a larger iPhone

Funny how it took 18 months for that drop to show up, sog ... I see the war involving you and reality continues unabated ... you go girl!

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waterrockets 11 Years · 1228 comments

sog35 said:
volcan said:
Both Android and iOS are getting mature at this point and there are very few differences in user experience unless you are already part of the Apple ecosystem, have other Apple devices or friends with Apple devices who you communicate with regularly. Aside from the superiority of Facetime and iMessage, I imagine both platforms are probably about the same from a software perspective, although one big advantage for iOS is the security of the App Store and the ease of OS updates. Clearly, Apple devices are second to none in build quality and are more of a status symbol, which is important to some, but if Android is a lot cheaper and the usability is almost as good, I can see why budget conscious buyers might be attracted to Android phones. Also, at the moment, China is in a slight down turn economically, so that may be a factor as well.

Personally, I love FaceTime audio. So much better than regular phone calls. Same with iMessage. 
There is still a huge gap between an iPhone and a $100-$300 cheap Android.

iPhone units are down because the iPhone6 cycle was a one time event. Massive multi-year pent up demand for a larger iPhone

Well, you can get a Nexus 5x for $200 now, with a one-month ($20) commitment to Project Fi.

http://www.macworld.co.uk/review/iphone/iphone-6s-vs-nexus-5x-3627323/

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jungmark 13 Years · 6927 comments

Skeptical of "urban China". They could have gerrymandered this population to fit their preconceived agenda.