Apple Inc. (NASDAQ:AAPL) has seen a major decline in revenues from China due to the tough challenges faced from April to June. So far Apple is up against the cheaper local mobile competitors that form the second largest market of mobile in China. The company also has to face Samsung that keeps introducing different mobile phone models at varying prices ranges.
It was predicted by analysts before Apple Inc. (NASDAQ:AAPL)’s third quarter results were revealed that the company might lose its share in the world’s most leading smartphone market.
An analyst Huang Leping, an analyst at Hong Kong based Nomura in Hong Kong, says that Apple’s market shares suffers due to the monopoly of some local manufacturers that introduce cheap smartphones. Some of these vendors are Vivo and Xiaomi.
According to Canalys research company Apple is the top shares in the smartphone market in Hong kong with 46% share of the total market; however this is a decline from 2012’s second quarter where this figures was up by 54%. The first quarter results for Apple reveal that market share in China has seen a definite decline.
In its 2013’s third quarter Apple Inc was able to sell 31.2 million iPhones; however, its revenues from Greater China have taken tumble down by 43% as compared to its previous quarter and fell down by 14% as compared to last year.
According to the first quarter of 2013’s results, Apple enjoys 9.7% of the total Chinese mobile market shares, which ranks Apple at 5th place. This figure is quite low as compared to the leading market share of Samsung, which enjoy 17.7% of the total market share. Among other companies, Huawei Technologies claimed on Wednesday that in 2013 the company is expected to reach the figure of 10% in revenue growth.
According to Huang’s expectations Apple’s market share in China will go down in the future quarters because iPhone is no longer a novelty among smartphone users who prefer buying cheaper models.
In pre-market trading shares of Apple Inc. (NASDAQ:AAPL) shares in the premarket trading went up by 3.94% ($435.50).