Apple Learns What Samsung Forgot: How to Sell Phones in China

There was a time not long ago when both Apple and Samsung seemed at risk of losing the Chinese market to increasingly confident local companies. Apple's earnings report on Tuesday—with sales in China doubling in the past year, and revenue increasing 70 percent in the last quarter—proves that at least one foreign tech giant is rolling in China.

Apple's rise from obscurity doesn’t bode well for Samsung, which appears to be falling from power. Back in August, at the time Apple’s share of the market was also shrinking, Samsung lost its distinction as the country’s best-selling smartphone brand to local powerhouse Xiaomi. But things have been changing rapidly since Apple released its latest iPhones. The large-size iPhone 6 Plus took away a core advantage Samsung had in Asian markets, where customers prefer larger phones. The big screens are doubly good for Apple because they are also more profitable for the company. The average price consumers paid for iPhones increased $50 over the quarter.