A Look at Apple's iPhone and Rising Market Cap PART 5 OF 13
By Adam Rogers | Jun 1, 2017 12:58 am EDT Over 80% share in China's premium smartphone segmentCounterpoint Technology Market Research stated that the Chinese smartphone market in 1Q17 rose 4% YoY (year-over-year), driven by low-end phones priced between $100–$400. Domestic manufacturers such as Oppo, Vivo, Huawei, and Xiaomi dominate the overall smartphone market in China.
Apple (AAPL), however, dominates sales for smartphones priced over $600 (or 4,000 yuan). Counterpoint's Neil Shaw stated, "Apple's share of this super-premium segment remains at 80%, with five out of the top ten model SKUs belonging to Apple. The 4000 [yuan] and above segment mostly peaks during the Apple iPhone launch quarter and shrinks for the rest of the year."
According to Counterpoint Technology Market Research, competition from domestic players led to a fall in Apple's smartphone market share in China from 12.5% in 1Q16 to 10.7% in 1Q17. Domestic giants account for over 50% of the market in China, but their combined total operating profits comprise less than 5% of global operating profits.
While Oppo, Vivo, and Huawei accounted for 1.3%, 1.5%, and 1.6% of global operating profits, respectively, Xiaomi and ZTE are still reporting operating losses. Although Chinese companies in the smartphone space have focused on lower costs to drive their revenues, Apple has focused primarily on the premium segment, which represents the majority of the profits.
Source: Apple Dominates China's Premium Smartphone Market
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