China Isn’t Interested In The iPhone, But It Can’t Get Enough Of Android [Report]

(5:35 am PDT, Dec 19th 2012)

China Isn’t Interested In The iPhone, But It Can’t Get Enough Of Android [Report]

Android’s market share continues to grow throughout the world, but one country where Google’s platform is having its biggest impact is in China. It’s now the largest single Android market in the world, with one third of all Android devices sold there during 2012. The iPhone, on the other hand, is struggling there.

According to new research from Informa Telecoms & Media, two in every three mobile phones sold in China in 2012 were powered by Android. The country is “by far” the fastest-growing smartphone market, with a year-on-year growth on 85% during 2012 — and a lot of that was thanks to Android-powered devices.

“Despite the economic downturn, the global smartphone market is enjoying healthy growth and consumers are actually spending more to acquire more technologically-advanced devices. It is estimated that around 786 million smartphone devices were sold in 2012 (including the devices powered by non-certified variants of Android that are proliferating in China), which is 45% more than the total number of smartphones sold in 2011,” explains Malik Saadi, principal analyst at Informa.

So, how are Android’s rivals doing? Not so well, it seems. Apple’s iPhone holds just 5% of the market, while devices powered by Microsoft’s Windows Phone platform account for just 1%. Windows Phone’s share is expected to increase in 2013, however, thanks to Nokia’s new partnership with China Mobile, the world’s largest carrier.

For the iPhone, things don’t look as promising. Informa says Apple must made “radical changes to its ageing [sic] iOS, particularly to the user interface,” if it wants to continue to compete with high-end Android devices. The Cupertino company also needs to introduce a TD-LTE compatible iPhone for China Mobile if it wants to increase its market share in China.

“Looking forward, Android is expected to continue gaining market share globally and, by 2015, one in every two handsets sold worldwide will be powered by it. However, according to Informa Telecoms & Media, the market share of this platform could potentially peak – or even decline – after 2016 owing to a more aggressive penetration of the alternative OSs, most notably Windows Phone,” concludes Saadi.

Apps you might like

Comment »

  • highterrain

    That’s perfect since Android is such a piece of shit mobile OS now Google has found a way of hacking into China vs China hacking into Google.

    • Arti H

      I’m with you on in this, Additionally, Android is a platform, a platform of 80% of worst phones in the world, SO STOP COMPARING A PLATFORM TO A ACTUAL PHONE (iPhone)

      • abc905

        True that. Android as a whole is like the new Symbian. Everybody takes a bite out of it. Only the cream of the top, especially the Nexus series, is worth comparing to Apple and WP8.

  • http://twitter.com/shanecbryson Shane Bryson

    Well judging by the quality of products they are used to, it’s understandable that they would take to Android.

  • disqus_NcIAvqdvKe

    Android is the new Symbian…. cheaper phone will always sell more….

  • NutjobNumber1

    What’s funny is that the iPhone 5 JUST STARTED SELLING less than a week ago. I think you have to give a platform a little longer than a week to prove how many people want the product. Plus’t they have to also sign China’s largest carrier. Stupid article.

  • TeeJay2000

    The numbers are pre iPhone 5 launch. Yawn. And If you read the full press release, these ‘Android’ phones are not really full Androids as 41% of these ‘devices’ support alternative application frameworks such as Baidu! So sales of these pseudo Androids also don’t help Google as they do not increase Google searches. Deceptive article.

  • BenGleck

    According to data analytics website CNZZ.com, Google currently has a 5 percent share in China’s search market.

    • abc905

      because Google doesn’t understand the Chinese usage preferences like the Chinese do.

  • http://twitter.com/_oleic Tuan Anh Bui

    In China everybody I know actually want an iPhone. They would switch immediately if someone give them one.

  • NicoS

    2 Days ago : Over 2 Million Iphones 5 sold over the weekend in China.
    Today : China isn’t interested in Iphone

    Yeah right..

    • http://profiles.google.com/sigzero Robert X

      Exactly!

    • The__Truth__Hurts

      Yes, record iPhone 5 sales. But look at america. record iPhone 5 sales and not even 3 months later, it is being discounted anywhere from $50 to $100.

      Basically. The people who want the iPhone are lining up on day one (getting it on day one) and then afterwards, it sharply drops.

      • http://www.thegraphicmac.com/ JimD

        Apple isn’t discounting the iPhone 5, RETAILERS are as part of their holiday sales.

  • Slappy122

    Wow. You would think an “analysis” of how the iPhone is doing in China would mention that the iPhone is not available on China Mobile. It wouldn’t be far fetched to suggest that not being available on China Mobile, the largest telco in the world with roughly 700 million subscribers, is the number one reason for the numbers mentioned. But perhaps that’s expecting too much of Cult of Android.

    • Anton_Frost

      Why isn’t the iPhone available on China Mobile? Is it because Apple can’t push their agenda on China Mobile effectively and actually have to bargain in a way they don’t normally bargain?

  • worldsapart_jga

    This is a terrible article purposely written to highlight Android over the iPhone when leaving out so many important facts of course the Android will look better. But we all know better.

    • abc905

      Most Android systems are like netbooks. They can do lots of things, but at a speed thats far worse than tablets/dumbphones

      • Pj Almonte

        I’m sorry but that’s not true. Galaxy s3, Droid DNA, Nexus 4 LG optimus are all as fast or faster than an iPhone. Fact of the matter is, China likes Asian products , not american unless they are F35 RAPTORS. Let’s stop the nonsense. Android has evolved from the days when it was iOS shadow. Check out all the new things jelly bean does that the iPhone doesn’t . its just perplexing. Its hard to believe the iPhone came out first . have a nexus 4 and its the best mobile I’ve had. Former iPhone 2g, 3g, 3gs,4,4s, 5 owner. Not all androids perform at the same level. Make sure you use a decent one before judging then whole of android

        • Daniel Forsberg

          He wrote “most” Android systems are like netbooks, and he is completely right. There are a lot of very good Android phones but the majority of Android phones being sold are of the cheaper kind.

        • abc905

          What the other guy said. I said most android devices, and if you’ve ever visited China, that is the truth. Also, China = super mutated android. Crapware even on the high-end devices, and NO PLAY STORE. People have to root or hunt down apk files just to get some decent apps. Also, don’t even get me started on Google services and prices. All high end Android phones more or less cost more than the iPhone, and are often released super late. And the best Android phones, the Nexus phones, are no where to be seen. Wanna Google something on your Chinese phone? Well guess what? You’re forced to use bing/baidu! Google services work only about a third of the time. These factors mean the average Android experience for a “smart” phone user in China is a pretty shitty one. Its quickly becoming the new symbian. Sure Android is pretty awesome, but just not in China, where Jelly Bean is like an impossible dream. Because the OEMs and Google just don’t have the sheer might to properly push the good product to the consumer.

          • Anton_Frost

            So why is Android the prevailing marketshare leader in China if the user experience so awful? Price? That clearly would mean that the Chinese are willing to put up with a lot for a lower price. Maybe Apple should lower the price in order to get into the Chinese market in a bigger way.

          • abc905

            marketshare =/= profit & brand quality. If Apple would stoop so low as to match the quality of the average Android device in China (which it would never), it would lose its status as a status symbol, and thus kill its own market share. Apple products in China sell for 20% higher than HK prices, and consumers who want it are happy to pay the price. Same thing with the gold plated Samsung Android phones.

  • http://www.facebook.com/profile.php?id=668336284 Robert Perez

    When will people get that Apple is not repeat not not interested in the low end market same as BMW / Mercedes

  • abc905

    Ha, like that is ever true. Its only because Android is the new OS everybody installs on their crap-phones in China, like a new Symbian. Only the GS3 can sort of count as much of a status symbol as the iPhone in China. If you think about it, 5%, or 1 in 6 of the Chinese urban population, or like a third of the “wealthy” Chinese, is quite a bit of market (80 million) for Apple to have.

  • wwry

    Most people in US don’t know that most of country in Asia sell phones without contract. Only few country of them sell phones with contract.

    So when you want to buy iPhone, you should pay at least US 700 instead of US 200 or maybe lower with contract just like in US. And not all people here can afford to pay US$ 700. But many people can buy android smartphone with just US 150 or maybe even lower price. They don’t care about the high end android smartphone, at least they already use smartphone.

    That is why, android market share is bigger than iphone in global.

    • http://twitter.com/ulyssesric Richard Liu

      Not true in Japan, China, Korea and Taiwan. Most phones are sold with contract in these countries.

      • Mbin

        Richard you right. But he don’t say all countries in Asia, just a few of them like the countries you mention. I live Indonesia and iphone 5 just launched here with contract. The cheapest package you can get here, is around 1300 usd, but the monthly fee is 90 usd for a year. I dont about other countries. How about Thailand, Philipines, Brunei Darussalam, Pakistan, India, Myanmar, and more other asian countries?

        • abinpt

          in india call charges are so cheap when compared to other part of the world($0.012 per min) . so its so difficult for operaters to subsidize too much for a mobile . also people do not prefer for contract based connections.

      • abc905

        But people rarely buy them with it.

        • http://twitter.com/ulyssesric Richard Liu

          Not true. In Japan, ALL iPhones are sold with contracts. In Taiwan, about 90% users will buy phones (any brand) with contract. In China, about 60% users will choose contract-free phones. Singapore and Hong Kung are special cases where the foreign buyers are significant in the total sales.

  • http://www.facebook.com/people/Steffen-Jobbs/100001574843303 Steffen Jobbs

    And in other news: The top selling car in China is the Zhejiang Geely Company’s Panda which outsells any Mercedes Benz, BMW or Porsche model. Many Chinese would like to own those more expensive and prestigious imported German vehicles, but most Chinese consumers can’t afford them. The moral of the story is most Chinese consumers buy what they can afford, but not necessarily what they desire the most.

  • http://www.facebook.com/ali.m.fawaz Ali M. Fawaz

    The real reason so many android phones are being sold in china is that chinese phone makers make cheap, crappy phones that run a very primitive form of Android, i have seen many of them, they insult the word “smartphone”!!! Besides, everybody in china wants an iPone, it is a well known fact!

  • The__Truth__Hurts

    Yes, Apple’s iPhone 5 is bringing in record sales.

    Is it because the demand is higher or availability is greater?

    iPhone 5 is the FIRST iPHONE where loyalty rate sunk. Anywhere between 5 to 25%, maybe more. Largest drop of the iPhone loyalty rate was OUTSIDE OF AMERICA.

    iPhone 5 is on a lot more carriers and a lot more carriers from the get go.

    Apple has pushed the iPhone into far, far more countries than last year. Compared to previous years, a lot more countries are getting it a lot sooner.

    There was a limit on the iPhone (2 per person/whatever). Apple removed that 1 month earlier.

    Then an iPhone supplier cut back their iPhone hardware.

    About, every non-Apple store and carrier store has the iPhone 5 discounted! Anywhere from $50 to $100!

    Apple stores EVEN honor the lower price!

    Oh yes, you can “claim” that the iPhone may have records sales here or there, but that is BECAUSE it just landed. Also, has it ever crossed your mind, there is a MASSIVE SURPLUS of iPhones? Meaning if 2 million people want iPhones, it’s easy to get it to them because there are just plenty sitting around? Unlike the start, where there was massive difficulty making the iPhone so numbers were “limited”?

    The iPhone cooled off. Yes, they may have “record” sales at the beginning, but quickly cools down to the point where they have to mark them down $50 to $100 to get them moving, not even 3 months afterwards.

    And with the Nexus 4, Lumia 920, HTC 8X near impossible to get hold of, LG’s flagship phones, Samsung flagship phones and other flagship phones FLYING OFF THE SHELVES…..

    People don’t want iPhones anymore. Those who want them are picking them up on the day they are going on sale. Everybody else? Really doesn’t care about them and going with other phones.

    • http://twitter.com/WINDOWSMUSBEDIE David Edwards

      Yes, some Apple Resellers have brought down the price of the iPhone, but thats to help the STORES SALE RECORDS! Look at it this way, people are going to buy the iPhone from a store they know has it, like Best Buy. They DO NOT have the iPhone marked down, but at retailers like Fry’s and Walmart, Fry’s no one hardly thinks about as being an Apple reseller, and Walmart IS A DISCOUNT STORE!! All these stores want to do is get in the black for this quarter, because maybe they didn’t hit the mark with ALL their merchandise on BLACK Friday, so to get foot traffic, they lower the price of an item MOST PEOPLE WANT!

      Apple Stores have to honor the lower price BECAUSE APPLE OFFERS PRICE MATCHING. It’s in their guidelines.

      You know why these Android handsets are “flying off the shelfs”? Becasue they are being offered for free with a new 2 year contract! Some stores are even GIVING them away when you sign up for a new 2 year contract on 2 lines! I rememeber Sam’s Club on a pre-Black Friday sale, they had the SIII on sale for $.01 to get product moving. But when I go ask about the iPhone 5 in late December, “Sorry we are sold out, but we have the Galaxy S III on sale!”.

      And the chinese live within their means! If they need a smartphone to keep in contact with their family, which are they going to choose? The US$650 iPhone 5 or the US$150 Android phone. And most of these Android phones selling in China are the ones you get off the street from any vendor for no more then US$50 or somewhere around there! Its like comparing a $13,000 Fiat to a $100,000 BMW. With the BMW you pay more for simplicity, the finer materials used, and other things you only get with a luxury car, where the Fiat is used to get you around town to run errands.

      People don’t want iPhones? When I go the store I see more people pull out an iPhone then any Android phone. And the other day, I went to a friend’s son’s Christmas play and I was told there where 40,000 people there by the principle

      • http://twitter.com/WINDOWSMUSBEDIE David Edwards

        And how many Android phones did I see taking pictures? 2. And how many iPhones? 2 dozen. Thats 1 Android to every 12 iPhones. It could just be the area I live in, maybe they enjoy the finer things in life. So before you go saying “They have to mark down the iPhone to get it moving” and “Nobody wants an iPhone”, just remember, the only reason Androids sell to normal people is because on contract they bring down the price to a penny or even free to “get them moving”.

      • The__Truth__Hurts

        Walmart/Target/Best Buy/etc… are UNDER CONTRACT to sell at the price what apple wants the price to be. THEY CANNOT DISCOUNT THE PHONE “JUST SO”.

        Walmart CANNOT discount the iPhone 5 as a “loss leader”. If they want to, they would have to sell the iPhone 5 with say $50/$75 in Walmart gift cards. BUT THAT IS NOT THE CASE.

        Apple APPROVED the discount/gave the discount BECAUSE the iPhone 5 isn’t flying of the shelves. And when stores do the exact same thing left and right? It tells you something.

        The iPhone 5 ISN’T SELLING HOW APPLE WANTS IT TO BE!

  • http://twitter.com/ekim1406 ɯıʞǝ

    if they dont want iPhones/iOS devices then why do so many come to the US to buy a ton of iPhones and iPads so they can bring back to their family in China? Part of Apple’s restrictions when buying the iPhone is partly because they would come and buy as many as they could. Now they can only buy 2 i think.

    • The__Truth__Hurts

      Cheaper…..?

      I knew countless of European friends that every time they came to america, they bought their electronics over here. Was far cheaper to buy them here. an iPad may be 500 Euros over there, but $500 here. Buying it here could save them (easily) $150, if not more.

  • http://twitter.com/gnomehole The Gnome

    China.. addicted to cheap plastic lesser quality phones. Big whoop. P.S. get this cult of fagdroid out of my Cult of Mac feed please. i don’t need to see how the lesser half lives.

  • Kr00

    Simple. Because they’re cheap. Cheap people go for cheap crap. You’re welcome.

  • matt

    Wow so many garbage people on here commenting, Because there is a low end market of android devices does not make the user experience of the overall OS Bad. it just means feature phones are extinct due to the availability of low cost smart phones, in no way does it put Apple ahead, you can buy cheap iphones, a generation or two old for low cost. Android is reaching out to every price tier. Don’t let these people fool you. High end Android phones are a better user experience then Apple’s iOS on iPhone5. Saying Apple is losing market share because they are to good to stoop to a lower cost market, that is the dumbest strategy, and it shows with Apple losing market share all over the world. The only people who will jump ship to a iphone no matter what just because its a *iPhone* so it much be better. Welcome to the world of marketing.

About the author

Killian BellKillian Bell is a freelance writer based in the UK. He has an interest in all things tech and also writes for TechnoBuffalo. You can follow him on Twitter via @killianbell, or through his website.

email hidden; JavaScript is required| Read more posts by .

Posted in Android, News | Tagged: , , , , , , , , , , , |


scribol