Though Tim Cook value Chinese market very much, according to the latest statistics from Canalys, a leading provider of consulting and market analysis for the converged high-tech industry, Apple's smartphone market share is shrinking in China. Apple has fallen from the fifth place to the seventh in Chinese market.

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Recently, Canalys published its final Q2 2013 smart phone shipment report, which estimates the shipments of smartphone manufacturers from more than fifty countries that it tracks. Based on Canalys' reports, shipments in China grew 108% year-on-year to 88.1 million in Q2 2013. China is still the world's largest smartphone market with Chinese top five smartphone manufacturers accounting for 20% of the world's smartphone shipments. China has the second highest growth rate in the major markets in worldwide sales.

According to Canalys' statistics, the top five manufacturers are Samsung, Apple, Lenovo, Yulong and LG. They account for 32%, 13%, 5%, 5% and 4% in the global smartphone market. China's Huawei, ZTE and Xiaomi rank 6^th, 7^th and 12^th in global market. The five Chinese smartphone manufacturers shipping the most devices worldwide are Lenovo, Yulong, Huawei, ZTE and Xiaomi. The five companies made up 20% of the total market, up from less than 15% a year ago.

Apple's iPhone is suffering difficulties in Chinese market. A principal analyst of Canalys said: "The high end of the market continues to grow but there is no doubt that the explosive growth will come from the low end of the market. Apple needs to respond to this dynamic and it is evident from the performance of its older models this quarter that there is real demand for a new low-cost iPhone. The challenge that it faces is maintaining high margins on arguably the most important products in its portfolio." So far, a new profit point in Chinese market is the smartphone under 1000 RMB. Apple should make some efforts to meet Chinese consumers' needs in order to increase its sales volume.