Two Challenges Apple Faces in Quest to Make China Number One Market
BOSTON, April 30, 2013
BOSTON, April 30, 2013 /PRNewswire/ --Earlier this year, Apple's CEO, Tim
Cook, affirmed that China will one day overtake the US as the company's number
one market. In recent years, Apple has made significant inroads into the
Chinese market, however, the iPhone has not been able to effectively tap the
mass market for two reasons, according to a new research note from Pyramid
Research Associate Analyst Guillermo Hurtado.
Read the full Pyramid Point here.
"First, the iPhone is too expensive for the average Chinese consumer," says
Hurtado. While the smartphone ASP in China stood at $204 in 2012, all iPhone
models are currently priced above $400. Second, Apple has not been able to
finalize a deal with government-owned operator China Mobile, which as of the
end of 2012 had more than 717m mobile subscriptions, making it by far the
largest operator in the country. Revenue sharing disagreements and
incompatible networks have reportedly held back China Mobile from carrying the
iPhone. As a result, the mobile operator has been losing market share to China
Telecom and China Unicom, which do carry the iPhone. "In light of its current
situation, Apple has a difficult task ahead of it is to make China its number
one iPhone market," he adds.
Read more about what Apple can do to make China its number one market here.
Pyramid Research China Smartphone Forecast
China: Operators Turn to Mobile Data, Broadband to Drive Telecom Market
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SOURCE Pyramid Research
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