The iPhone trails in China (too)

Samsung SGH-i400 smartphone

Image via Wikipedia

Close on the heels of a report that suggests that Apple is loosing the smartphone battle in India, Gartner reports that the iPhone has less than a third of the marketshare of Samsung in the much bigger smartphone market of China.

as Apple tries to build on its 7.5 percent share of the country’s smartphone sales. Samsung controlled 24.3 percent of the market for phones that can play videos and games, according to Gartner Inc.

 

When one considers that China is projected to become the world’s largest smartphone market next year, this should be a cause of worry.

Succeeding in China is important for Apple as shipments of smartphones in the country are projected to jump 52 percent this year to 137 million units, overtaking the U.S. for the first time as the world’s biggest market.

 

While analysts suggest that Apple’s low market share is due to its exclusive partnerships with the smaller two of three major carriers, this does not take into account the price differential between Samsung’s Android based offerings and the iPhone. One could expect that the reasons why the iPhone doesn’t rule in India also hold true in China.

Apple’s partnerships with China’s second- and third-largest carriers give it access to about 34 percent of the nation’s 988 million mobile users, while Samsung targeted the whole market.

 

As I wrote a six months ago, demographics alone can give Apple $68 billion in additional sales from emerging markets – but this is just the tip of the iceberg!

 

In the next 3 years, 400 million people are expected to buy cellphones in India alone. If Apple can get a large chunk of these consumers onto its ecosystem, the future cross-sell and up-sell opportunities will be immense.  There lie considerable riches at the bottom of the pyramid.

Moral of the story – The Exploitation of existing certainties has a potential $68 billion upside, but this pales in comparison to the potential of the Exploration of new opportunities. An ambidextrous approach could see Apple revenues grow many fold!

 

Read more at IPhone Fails to Gain China Share as Samsung Lead Triples: Tech – Bloomberg.

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