In developing markets such as China and India, owning technology branded by Apple symbolizes wealth and status in society. Apple’s iPhone is the entry point into luxury for millions of people in developing countries and it is by far the best selling Apple product.
Although Apple is releasing a cheaper iPhone 5C, Apple is losing market share in China. It struggles to compete with Chinese phone makers Lenovo, Xiaomi, and ZTE, which all offer solid mid-range android phones for half the price of the iPhone. Samsung is the current leader in both the Chinese and Indian smartphone markets. The secret to Samsung’s success? Samsung offers a rich variety of products that cater to consumers of all budget categories. It offers varied screen sizes, a broad spectrum of models to choose from, and fresh updates from Android only contribute more to the appeal.
If Apple wants to continue to grow, then it needs consumers in markets like China and India to buy more iPhones. My research reveals that China and India combined have over 1.5 billion people between the ages of 15-54. Consumers in that age group could potentially be in the market for a new smartphone, and Apple needs to design an even cheaper model than the 5C to appeal to the majority of that age group. If not, Apple will just be locked in the North American market, while rivals Samsung, Lenovo and ZTE take over the world.
Apple’s iPhone 5s
Samsung’s Galaxy S4
- Lenovo’s K900
Sources:
“China Demographics Profile 2013.” China Demographics Profile 2013. Index Mundi, July 2012. Web. 19 Sept. 2013.
<http://www.indexmundi.com/china/demographics_profile.html>.
“India Demographics Profile 2013.” India Demographics Profile 2013. Index Mundi, July 2012. Web. 19 Sept. 2013.
<http://www.indexmundi.com/india/demographics_profile.html>.
Press Trust of India. “Samsung Beats Nokia to Top Spot in India, Apple Posts Strong Gains.”NDTV Gadgets. NDTV, 21 Aug. 2013. Web. 20 Sept. 2013.
<http://gadgets.ndtv.com/mobiles/news/samsung-beats-nokia-to-top-spot-in-india- apple-posts-strong-gains-survey-408478>.
Yarow, Jay. “Apple Made One Thing Clear: It Doesn’t Care At All About Winning Smartphone Market Share.” Business Insider. Business Insider, 15 Sept. 2013. Web. 19 Sept. 2013.
<http://www.businessinsider.com/apple-clearly-doesnt-care-at-all-about-winning- smartphone-market-share-2013-9>.