Top leading companies of world are vying for the biggest market share and in such a case, achieving this aim by ignoring China is not possible. Apple seems to understand this thing very well. According to the recent reports of Canalys (A research firm), stating detailed Smartphone shipment estimates for first Quarter of 2012, China Smartphone Market surpassed US market in terms of smart phone subscribers and with that China has become the largest Smartphone market in the world.Canalys said that this change in trend is the outcome of iPhone 4S arrival in China market during Jan. If we talk about statistics then, in the first quarter of 2012, where US accounted for just 16% of global shipments, china reportedly showed 22 % of global Smartphone Shipments. The interesting thing is that just a year ago, the statistics depicted altogether a reverse picture by showing US holding 16 % of Smartphone market share and China holding 16% share.
In order to make its report more credible, Canalys stated that among top 10 countries who together comprise the biggest Smartphone market share, out of them half belong to Asia-Pacific region. Where at one side, shipments in theUSgrew by mere 5 %, on other sideAsia–Pacific region recorded 81% of growth.
Canalys Research Director for China, Nicole Peng stated that ‘As well as seasonal factors, such as the Lunar New Year, the iPhone’s arrival at two of the country’s carriers helped boost volume and raised Apple’s share to 19% but it was Samsung that took the lead Samsung expanded its smart phone business substantially through its existing mobile phone channels. Its wide range of localized devices helped increase uptake across all carriers, and it combined this with significant marketing spend to drive consumer awareness.’
Apple wouldn’t have imagined in its wildest dream that iPhone 4S Market Share in China would grow to such an extent. Apart from Apple’s better understanding of local app store and local market, the reason also lies in growing income of Chinese people, which naturally create more demand for all kind of goods.
Tim Shepherd, Senior Analyst at Canalys stated that ‘Third-party app stores are ubiquitous on Android devices in China, to a degree not seen anywhere else in the world. The absence of the Google Play store as standard is a factor, but vendors targeting this market must understand the intensity of competition between these stores and how it has promoted innovation. If the big international app store providers want to attract Chinese consumers, they must quickly reach the point where they can offer a large selection of good-quality, locally-relevant apps and content. This can be achieved organically, through partnerships, or by acquiring a major third-party Chinese app store. But they must also offer suitably localized and relevant featured app listings and ensure the content does not stagnate.’
This report by Canalys, proves that Market does exist everywhere, one just needs sharp eyes to explore the possibility in existing market and if one aims to go extra mile then he must create a new market by introducing qualitative and innovative product and Apple has done the same. Let see what strategies are adopted by Apple’s rivals to approach china Smartphone market which is generally considered as very rigid and conservative.