Tuesday, September 23, 2014

Chinese Mobile Consumers Remain Divided

Since Apple launched its bigger screen phone, smart watch, and new digital-payment service, Apple lovers around the world, especially those in China, are interested in discovering more details about the three bold bets. 

Recently, an article in EnfoDesk posted the second quarterly mobile phone sales in China for 2014. The data shows that 1.12 million phones were sold in the 2nd quarter, including 1.09 million smartphones, up by 24.4% from last year. Samsung commands 15.4% of the market, followed by Chinese local brands Xiaomi and Lenovo, with 13.5%, and 10.8% market share, respectively. Apple is ranked No.6 with 6.9% market share. 

Apple's high price has hindered expansion in China, but enthusiastic fans are still willing to pay more for new iPhones. Some are offering $3600 to $4000 to foreign buyers for the new iPhone 6. 

Big screen smartphones are the primary computer device in China, and demand had never been higher. Samsung Galaxy used to enjoy a significant advantage over competitors. However, the advantage is vanishing as other competitors launch their new big screen phones. Beside Apple, Huawei Technology released Mate 7, a mix between a tablet and a smart phone with a 6-inch screen. 

Now, Chinese customers have many technological options. Consumers remain divided: some opting to support Chinese brands, while others value quality above loyalty. The latter believe Apple has higher quality products, customer services, and user-friendly interface than competitors. 

This is a decisive moment for Apple. The company needs to collaborate with the Chinese government and network provider to design regional marketing strategy to drive iPhone sales. According to Wall Street Journal, Apple made a deal with China Union Pay to bring US Tech Company’s smartphone payment option to China. Apple competitors include payment service companies, will have a difficult time once Apple pay is ready in China. 

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