iPhone 5 Galaxy S4 (Tagscape 001)

Apple may be winning in the United States, the world’s top market for smartphones, but in the 1.33 billion people market of China – which is Apple’s second most-important territory revenue-wise – Samsung is beating local vendors of cheap handsets to the punch.

According to data from research firm Canalys, Samsung has overpowered rivals in China.

The company has grown its September quarter share to 21 percent, a notable jump from just fourteen percent a year earlier. The Galaxy maker was estimated to have shipped nineteen million smartphones during the third quarter ended September 30. It’s worth underscoring Samsung does not disclose unit sales like Apple does, citing competitive reasons.

For the most part, Samsung’s growth came at the expense of local vendors who build dirt-cheap handsets. But what about Apple?

Although the iPhone maker’s shipments in China grew 32 percent from a year earlier, its market share fell to six percent from eight percent a year earlier, Canalys told the Wall Street Journal. Samsung grew much faster versus Chinese vendors, with a notable exception of second-placed Lenovo whose market share remained steady at thirteen percent though its shipments surged 64 percent.

Blame Apple’s slight decline on the limited iPhone 5s output and iPhone 5c pricing.

Canalys researcher Nicole Peng explains:

As Apple’s hefty price tag for its iPhone 5c in China indicates, the company is clearly focusing on the high-end segment where growth isn’t as robust but margins are more stable.

She thinks going for the low-end would be “too risky” a move for Apple to make.

If the choice is between a cheap smartphone from a Chinese brand and a Samsung smartphone that is only a little more expensive, many Chinese consumers would choose Samsung, said Ms. Peng. “Chinese consumers already know Samsung because of its TV sets,” she said.

On the other hand, Apple’s numbers have gone up slightly from the five percent share in the June quarter, courtesy of strong iPhone 5s sales.

Touch ID Home button

For the first time sine its inception, Apple is offering the iconic smartphone in the 1.33 billion people market from day one. The iPhone 5s/5c went on sale in the United States, United Kingdom, China and additional countries on September 20, 2013.

Apple would have grown more had it not been for production difficulties. The iPhone 5s is a complicated piece of technology to assemble and Touch ID sensor yield issues are only making the problem worse.

iOS 7 teaser (iPhone 5c ad 006)

The Wall Street Journal earlier this morning reported that Apple is now outsourcing iPad mini and iPhone 5c production to an additional two Taiwanese companies, Compal Communications and Wistron, respectively, as it “tries to ensure adequate supply to meet consumer demand”.

According to new comScore data for a three-month period ended September 30, Apple accounted for a 40.6 percent share of the United States smartphone subscribers, up from from 39.9 percent in June. Samsung went from 23.7 percent in June to 24.9 percent in September.

All other vendors lost ground in the U.S. comScore ranking amid intensifying competition. Together, iOS and Android now control a ridiculous 92.4 percent U.S. market share, a new high.

  • TesticularFortitude

    This report is hilarious. Apple doesn’t compete in the bottom of the barrel market. So it’s impossible for Apple to lose ground there. Apple competes in the premium market where it grew 32% year over year. I would much rather have 40% of a billion dollar market than 94% of a free one.

    • Gróf Attila

      u really serious about this?

      U think in china only poor people live??

      In china there r more than 1 000 000 000 people live, if only 2 or 3 hundred thousand can afford to buy an iphone it is instantly a bigger market thanthe us.

      • TesticularFortitude

        Yes, I’m serious. Apple competes in the premium market.

        Do I think only poor people live in China? Um, no.

        By premium, I mean expensive end of smart phones.

      • Partly in the premium, partly in the overpriced market. The 5c is no premium device (please don’t pretend it is), yet it has a premium price tag.

      • mehrab

        If it can beat a s4 in performance design and camera quality then it is oh wait it does

      • TesticularFortitude

        Boom!!

      • n0ahcruz3

        Yup it blows the 5c out of the water. In display quality battery performance and camera performance. And S4 looks better than the 5c IMO.

      • mehrab

        Um noh uh in display ppi it blows it out of the water other aspects like visibility color accuracy screen response times viewing angles screen brightness contrast it sucks. Camera wise iphone 5c has a better low light camera NO QUESTIONS ASKED. In day light 5c seems to have more color accuracy while s4 oversaturates. Sharpness is a mixed bag. Design wise the 5c is more premium and looks better then the s4 and im talking about the white 5c. Btw 5c has superb battery life

      • Tech Guru

        for every 1 thing you name that the iPhone does better I can name 5 that the S4 does better than the iPhone.

      • mehrab

        Yeah cheaper build laggier performance horrible low light camera horrible touchwiz useless features more jank everywhere

      • Tech Guru

        the S4 doesn’t bend for no reason at all
        the S4 doesn’t randomly reboot
        the S4 doesn’t suffer the blue screen of death
        the S4 doesn’t have any of the half dozen hardware related failures of the iPhone.

      • mehrab

        Bro please
        Dont blame apple for manucfatering issues it gets made in china and they are under HIGH demand but you can get a new iphone from an apple store if you have a faulty phone (i wonder what would happen if i got a faulty note 3, guess what i got one this time and half of the screen didnt work it took them 3 weeks to replace it how shi*** whereas for appleit would take a visit to a store.
        Randomly rebooting happens on iphone 5″s caused by ios 7 bugs which is now fixed by ios 7.0.3
        Blue screen of death happened for iwork apps and is also solved by ios 7.0.3( AN APP DONT BLAME A FAULTY APP LOL)

      • TesticularFortitude

        Because it’s a premium device.

      • n0ahcruz3

        People in china are ditching the iphone because 1) its expensive
        2) some people are buying phablets to have an all in one device. (Saves money).
        3) iphone’s limited functionality compared to the competition. (Yes The competition has caught up with apple).
        4) people will just buy a ipod touch for iOS experience instead of buying a phone which has a similar feature minus the phone.

      • TesticularFortitude

        Year over year sales says you are absolutely clueless… Of course, we already knew that.

        The iPhone is off to a fine start in China.

      • n0ahcruz3

        How about this for YOY saless for apple. Last quarter apple made a profit of 7.5b compared to 8.2b a year ago. Hows that?

      • TesticularFortitude

        Naturally. They sell products with smaller margins. iPad mini and older iPhones for example. MacBook Air is cheaper as are the macbook pros. It’s really not rocket science.

        They still own the premium markets in iPhones notebooks, and tablets.

      • n0ahcruz3

        Doesnt take away the fact that Apple made 8.2b a year ago compared to 7.5b this year(YOY). And besides all apple products tanked in Sales/shipments except the iphone.

      • TesticularFortitude

        Right. So iphone sales are up just like I said. And so were iPads but only slightly.

        Holiday quarter will be stellar too.

        Can’t argue the facts.

      • n0ahcruz3

        Mostly the growth is in US. As stated that market share in US grew to 40%+ from 39%. Whereas china slid. And i believe we are talking about china marketshare here.

      • TesticularFortitude

        Right. 32% increase yoy in china. Keep up!!

        In other words, Apple is outpacing the premium market in china. The budget market outpaced the premium market. Apple doesn’t play in the budget market. Apple brings in the lion share of the profits.

        Does this anger you? lol

      • n0ahcruz3

        32% increase in SHIPMENTS doesnt translate to end user sales thus marketshare remain stale or declined. In this case Apple went 6% down from 8%. As stated in the article.

      • TesticularFortitude

        Apple’s market share of the premium market did not drop. It increased. Apple doesn’t compete in the budget market – So they can’t lose or gain market share there unless they are in that market.

        And Apple is very well aware of this… They leave the scraps for Samsung et al.

      • Tech Guru

        entry level Galaxy S3 cost $300. in the past there have been 3 phones that have entry level prices higher than entry level iPhones.

        besides, YOU must be poor if you think $200 for a phone is expensive.

      • TesticularFortitude

        What if I am poor?

        But for starters, the iPhone isn’t $200, it’s $649. Dumbass.

    • Tech Guru

      then why the 5C !!!!!!!!!!!!!! which isn’t selling so well and apple cut production just 30 days after its release.

      do you think everybody wants or even needs a flagship phone with all the bells and whistles?

      I have a 10yr old son and the bottom of the barrel phone I gave him was my iPhone when I got the Galaxy S3.

      • TesticularFortitude

        How many did Apple sell and what did they cut the numbers to? Post a link to the “report” you read… lol, dummy

        Is it the same source who said Apple sold 5 million on launch day when they in fact had sold 9 million?

  • jack

    Chinese buy their asian stuff while Americans aren’t smart enough to know their money spent on Samsung goes to Korea

    • From another point of view: Chinese/Asians buy stuff at prices that match their functions. Some Americans do the same by buying Android devices, whereas others just buy stuff ’cause of what they saw on TV (no reasoning, no questioning, just believing TV).

    • WolfgangHoltz

      Rather much of US$ bought on Apple devices is transferred to Asia too.

  • n0ahcruz3

    Even with the 4/4S or iflop 5c, it will not stop the eroding marketshare in china. Iphones are just too expensive.

    • WolfgangHoltz

      The people in China buying iPhone, earn so much more than you ever will. But are a lot smarter than you. So they buy the phone that is best for their need not to try be someone else like you. Chinese are to clever for that.

      • n0ahcruz3

        Why are you so pressed? Butt hurt that your precious apple is being crushed in china?

      • WolfgangHoltz

        Not at all. I have already sold my Apple stocks, so don’t care if they crash all over the world.

  • TeChNoStyLeZ

    Apple could easily change that if they make a real BUDGET phone, so everyone can aford an iphone, samsung has a wide range of devices starting at very very low prices and going up to 800 euro ( in my country ) , ( so everyone can find the right samsung device ) while apples devices start at 639 euro and go up to 980

  • mikkel

    Haah, all apple lovers, go kill yourself… let me know asap when you find out they are ALLWAYS lying about their “revelutionery device” the sooner you realize the better & simpler your life can be… i have moved every apple device to android, S4, Gamer PC & A windows surface… i am a really disapointed apple customer….
    Mikkel

    • n0ahcruz3

      You made an account just for that? If you really are a disappointed apple customer shouldnt u be at Apple community forum spouting your disappointment and disgust instead of here?

      • WolfgangHoltz

        Why? I liked his post, but not yours.

      • n0ahcruz3

        Lol i dont really care. He/she should post his disgust with apple products at Apple website. In here it wont do a thing. And besides im not an apple super fan aswell.

      • WolfgangHoltz

        Good to hear you not a apple super fan, proofs you can think by yourself.

  • Taf Khan

    Quality Costs! Simple.

  • Howdi

    I bought Nokia 925 it has better camera then android and apple, better screen you can see well in sunlight, better reception, faster internet , gives you Microsoft office. Its half price then the others, what else can you say..the best