With a customer base of well-over 700 million people, China’s mobile market is undoubtedly the biggest opportunity for Apple Inc. (NASDAQ:AAPL), who is constantly looking for ways to boost its iPhone sales. As a matter of fact, Apple does want to get a greater market share in the Chinese mobile industry and to actually dominate it, and make its main competitors (such as Samsung, which is Apple’s number one rival at the moment) fall on the second place.
Apple has closed a deal with China Mobile, a deal according to which the latter will start selling iPhone devices on the network. China Mobile did not do that until now, but this deal seems to be a mutually beneficial one – China Mobile will increase its revenue by selling such a popular smart phone, and so will Apple.
There are several other major mobile network providers that already sell the popular iPhone, such as China Telecom or Unicom, both of which are very popular in the country. Given the popularity of China Mobile, it is believed that Apple will record an increase of several million sales for its devices.
Statistically speaking, Samsung is currently the number one provider of electronics in China, with a market share of approximately 18%, while Apple is now located on the 6th place. If Apple wants to beat that, it will have to sell millions of other iPhones in Asia and to convince the local customers to purchase the iPhone over its competitor’s products.
Another very important aspect that is believed to boost the effect Apple will have on the Chinese market is that the new iPhones were launched just a couple of years before the Chinese New Year, which is believed to positively influence the local market. Even so, Apple does have a long and bumpy road ahead if it plans to dominate the market, given the harsh competition in the smart phone industry.
Even though iPhones are good devices, their prices are not accessible to many people, as the locals are more interested in purchasing cheaper smart phones that are priced at less than $200. Samsung is by far the main competitor given the fact that its state of the art Android devices come with very affordable price tags, which automatically makes them more appealing to local customers. The smart phone industry is surely very diversified and the locals have many options to choose from – they will always choose the one that offers the best value for their cash.