Feb 27, 2013
Samsung (SSNLF.PK) and Apple ($AAPL) are facing the challenge of increasing competition in the Chinese market from the leading local players such as Lenovo (LNVGY.PK), Huawei, Xiamoi and ZTE (ZTCOF.PK). The Chinese market is witnessing explosive growth with 53 million cell phones being shipped in the previous quarter, a 64% year-over-year increase. In such an environment, everyone wins on paper but the real fight is for market share. For both Apple and Samsung, their early-mover advantage is eroding. According to IHS iSuppli, Samsung's market share in China fell from 20% in 2011 to 14.2% in 2012, while Apple's share dropped from 10% to 7.9% in the same period. On the other hand Lenovo, whose growth is astounding versus the shifting background of the PC market, has increased its share in the smartphone market from 5% to 10% and both Huawei and ZTE are now ahead of Apple with a market share of approximately 9% each. These dynamics demand a response from Samsung and Apple.
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