Economics

How China May Make Apple and Samsung Smartphones a Tougher Sell

Customers try Apple products, including the iPhone, at the company's store in Beijing on March 12, 2013. Apple's Wangfujing store is the largest in Asia. Photographer: Tomohiro Ohsumi/Bloomberg
Lock
This article is for subscribers only.

In the quest to topple Samsung and Apple in China, local phone makers appear to have a powerful friend in the Chinese government. Several moves over the last year are helping to propel Chinese hardware companies at the expense of foreign giants.

The loudest effort comes from state-owned broadcaster China Central Television, which has accused Apple and Samsung Electronics of shoddy hardware, poor customer service and electronic spying that may make Chinese consumers wary of buying their products. But there's also quiet maneuvering that could yank the wheels off the premium smartphone model underlying the Apple-Samsung profit machine.