Tag: smartphone marketplace

Apple’s grasp on the mobile device market in China plummets

Local rivals have been heading up-market while Samsung offers consumers an unbeatable price.

Apple experienced some disappointing news from the mobile device market in China. During the third quarter, the iPhone maker saw a 29 percent drop in revenue compared to the second quarter.

Apple’s revenues from China also saw a surprising drop by a huge 33 percent year over year.

Third financial quarter 2015 revenues had been $13.2 billion in the Chinese mobile device market. This year during the same quarter, there has been a plummet to a much lower $8.8 billion. Tim Cook, CEO of Apple, blamed the slowing growth of the country’s economy as a primary reason for the nosedive in revenues.

Apple had once held the coveted place as the “it” brand in the Chinese mobile device market.

Mobile Device Market China - Chinese FlagHowever, local mobile device companies have been placing a massive focus on their brand image efforts. This has allowed many of them to grow from the level of cheap basic phone to upmarket premium smartphone models.

Among the top threats Apple is facing within the mobile phone marketplace in China is Xiaomi. That company has managed to clone a broad spectrum of Apple’s features, designs and even its marketing approach. It has been making every effort to replicate the appeal of Apple while knocking the pins out of the iPhone maker’s position at the same time.

In fact, it raced to replicate two anticipated upcoming iPhone features – that is, the dual cameras and OLED displays. Xiaomi then launched that device on the same day Apple was to announce its drooping revenue results. At the same time, Xiaomi has been working to appeal to the Chinese market to proudly buy local. It has strategically placed a series of billboard ads in the country calling its devices the “Made-in-China smartphones.” This, despite the fact that the majority of iPhones are, in fact, made in China as well.

That said, the Wall Street Journal identified another problem Apple is facing in the mobile phone market in China. Both Oppo and Huawei have launched attractive new premium smartphones to take on the iPhone. They have successfully given consumers another choice of high end device with a more affordable price tag. Following this successful positioning, they have been able to take a slice out of Apple, so to speak.

The American company now holds fifth place in the Chinese smartphone marketplace, behind Huawei, Oppo, Vivo and Xiaomi. Samsung is rapidly approaching by offering its devices with competitive pricing.

Mobile technology companies from China are making a splash

These firms are now looking to the Gulf region as one where there could be a wealth of opportunities.

Chinese mobile technology manufacturers are now starting to turn the ripples they’ve been creating in the industry into some rather promising waves, particularly after Lenovo managed to implement a similar strategy in 2013 in order to gain a top spot in the PC sector.

Recent research is now showing that smartphone manufacturers are aiming to replicate that achievement.

The Gartner research firm has said that Lenovo, Huawei, TCL, XIaomi, ZTE and Oppo have all made their way into the top ten ranks. Moreover, some of those mobile technology companies from China have established regional headquarters in Dubai. This only underscores the idea that those businesses have been looking toward the Gulf region as one of their next opportunities for advancement. Among those companies, Huawei has established itself as the third largest smartphone maker, with Lenovo in fourth place and with the fifth place holder being Xiaomi.

It is only recently that Huawei has started to take a more serious stance in mobile technology.

Mobile Technology SplashThe majority of the revenues generated by Huawei have been in networking equipment. However, more recently, it has become a much more important player in making smartphones. In fact, it was the only manufacturer to have seen year over year growth of over 70 percent in third quarter shipments. Comparatively, the growth seen by Samsung during that period was 14.61 percent and that of Apple was not that much higher, at 20.62 percent.

According to the Huawei Middle East vice president, Pan En, “In the area of consumer electronics, we are especially proud of the stellar growth we’ve seen globally and the increased demand for our mid- to high-end devices.” Similarly, the Lenovo Gulf general manager, Mohammad Hilili explained that the Gulf region is and has been quite a strategic location for quite some time now.

Hilili pointed out that “We launched our first tablet and smartphone in the UAE and Saudi Arabia. Then we expanded to other countries. We see a lot of potential in Dubai, especially being a hub.” Equally, he said that the Middle East and Africa (MEA) are two of the primary reasons that are foundations behind some of the strong mobile technology growth being recorded by Lenovo.