Apple market share in china outlook 2012-2013

Apple market share in china outlook 2012-2013 : When Apple officially launched its latest iPad in China last week, the big crowds and long lines seen at earlier such events were absent. A trademark dispute had delayed the iPad’s Chinese release but even in March, when the new tablet became available in the country through unauthorised resellers, retailers complained they had to slash prices 30 per cent in the first week because consumers were unenthusiastic.

Fears among some investors that Apple’s magic is wearing off in China, its second-largest market after the US, were compounded by last week’s third-quarter results. Announcing a rare miss of analysts’ overall revenues and earnings forecasts, Apple said revenue in Greater China slid 28 per cent to $5.7bn in the three months to June 30 compared with the preceding quarter. The June quarter in 2011 had seen revenues from Greater China – which consists of China, Hong Kong and Taiwan – jump sixfold.

Although Chinese sales were still 48 per cent up from the same period last year, with iPhone sales doubling year on year, the dip has scratched the shiny surface of a seemingly invincible brand and raised questions about how well Apple is doing in its most important emerging markets

Tim Cook, Apple’s chief executive, said on Tuesday that there was no “obvious economic issue” holding back growth in China. But some observers believe that the Chinese addiction to Apple products is fading because consumers are getting spoiled for choice and are becoming more price-sensitive because of the slowing economy.

Samsung, which had already been taking share from Apple in the Chinese smartphone market last year, has kept pushing out new models with equally attractive design and features but lower price tags. Huawei, the Chinese telecom equipment maker that is diversifying into consumer gadgets, offers sleek smartphones at a fraction of the price of the iPhone.

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