Apple Inc. (NASDAQ:AAPL) Unveil Of Two New iPhones Have Not Improved Its Narrowing Share In China
Apple Inc. (NASDAQ:AAPL) has launched two new versions of the iPhone 5 this week. However, market in recent times is accumulated with alternatives from Samsung to bargain-priced local brands. The dreary reception of company’s new products suggest that it is facing difficulty in defending its narrowing share of China’s teemed, highly competitive smartphone market and its premium prices. That matters a lot for the company, because China is a vital part of Apple’s growth commitments. CEO Tim Cook told the official Xinhua News Agency that he is expecting this country to cross the United States as its largest market in January.
Gu Lanjun, a 29-year-old employee at a Shanghai bank said that there was no big change, no surprise at all in the new unveil by the company. After purchasing the three most recent iPhone models as soon as they were launched, she said she would not update this time. Telecommunications analyst Jan Dawson of the research firm Ovum said in an e-mail that company’s market position in China has languished. He further said that one problem might be company’s high price constraining it to target the top market tier, and customers in that sector who want an iPhone already have one. He said that both of the models unveiled this week will be sold to existing subscribers largely and would not win many converts.
According to research firm Canalys, the company’s share in China smartphone market has dropped by almost half, from 9.1 percent to 4.8 percent over the past year. A Thai cable television company said it was taking a legal action against Apple for $3 million blaming the US technology giant of selling an application that go against its exclusive rights to English Premier League football. CTH has also filed criminal charges opposing the Apple Inc. and Apple Thailand with a Thai court that focuses in international trade and intellectual property disagreements. Apple Inc. (NASDAQ:AAPL) shares were down -1.05% to $467.74 in current session on trading volume of 1.72 million shares.