CHINA TOPIX

11/21/2024 07:38:08 pm

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Apple, Samsung Struggle in China's Phone Market

Samsung Galaxy Note 7

(Photo : Getty images) A Samsung Galaxy Note 7 lays on a counter in plastic bags after it was returned to Best Buy

Apple is looking to revamp its business in China with the launch of the iPhone 7 on Friday. This comes at a time when its leading competitor--Samsung--is facing a crisis because of the Galaxy Note 7's exploding battery.

Apple and Samsung came in at fourth and fifth place respectively in the Chinese market, according to data from Consultancy Canalys

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Jessie Ding, China's Canalys analyst, said that Apple's flaw in the China market is that its latest device does not have any new feature that has not already been exploited by Chinese mobile manufacturers.

"The iPhone 7, which comes with an improved camera, a water resistant body and does minus an earphone jack-doesn't have many innovative features," she said. "The double camera function was available on a Huawei smartphone six months ago, and it lacks wireless charging capabilities."

Apple iPhone 7
(Photo : Getty images)
A visitor tries out an Apple iPhone 7.

Apple's market share in China dropped drastically in June and July. The poor market orientation of the iPhone 6 in 2015 is said to have affected the company's performance in the country.

Samsung, on the other hand, is in a critical situation after the several people reported that the Galaxy Note 7 battery explodes when it is charged.

Neil Mawston, a strategy analyst, argues that the whole incident has been handled poorly, and the company's image is at high risk.

"Brand loyalty is not as strong in China as in other markets," he said. "It's a very crowded fragmented market and fiercely competitive with rivals undercutting each other with the price and design. So it's not a market you can afford to falter in."

Low priced handsets have posed a great competition for both companies in the Chinese market.

The number one smartphone maker in China currently is Huawei, according to Consultancy Canalys. Huawei recently launched the Huawei P9, which has equal capabilities with the iPhone 7 if not better and is sold at almost a third of the iPhone's price. 

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