Challenges ahead of Apple as China becomes world’s biggest smartphone market – Part 1

People’s Republic of China has become the biggest cell phone market in Asia and it is estimated that this calendar year, it will become the biggest smartphone market in the world, surpassing the US, currently reigning the world in terms of sales.

For the biggest players in the smartphone technology, Samsung and Apple, China offers promising prospects in the coming future. Not only is China going to become the biggest market for cell phones, it will also make room for smartphones.

For a novice, the difference between an ordinary cell phone and a smartphone is the more complex operating system in the latter one and freedom of using interactive applications including games, on a touch-screen device.

However, the biggest market also brings biggest challenges to Samsung and Apple to win the biggest market share, a competition currently dominated by the Korean company with a huge gap.

There are many reasons why Samsung is in the lead despite the growing demand for iPhones, Apple’s signature smartphone. The Cupertino-based company launched its 2010 model, iPhone 4, late in the market and their strategy has its own caveats toward the growth in market share.

One of the main reasons is vendor-carrier partnership, a culture set in the US, where vendor provides the device, and carrier sells it in the market with its services agreement-based subsidies on the retail prices.

In the global market, Apple is undoubtedly the king of such market and in the US, despite penning agreements with only two carriers, AT&T and Verizon (last year), the company has outgrown the profits of the likes of Samsung and Nokia.

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Posted by Usman Khalid on Mar 12 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.