Chinese smartphone vendors cut Apple out of top five in shipments for Q3

Coolpad smartphones took third place in market share for China, according to Canalys

Apple dropped out of the top five list in China's smartphone market for the third quarter, as local handset vendors saw their shipments surge from the sales of low-priced smartphone models, according to research firm Canalys.

The maker of the iconic iPhone held the fifth rank in the previous quarter, and second place in this year's first quarter.

Samsung however maintained its spot as China's leading smartphone vendor with a 14 percent share in shipments, while Chinese PC maker Lenovo trailed behind at second place with a 13 percent share.

The big surprise was the rise of Yulong Computer Telecommunication Scientific which took third place. Yulong sells smartphones under the brand name Coolpad. The company is largely unknown outside China, but has seen its shipments in the country steadily increase as a result of its broad product profile and low-end handsets, which reach prices below US$100, said Nicole Peng, an analyst with Canalys.

"They are doing especially well from their partnerships with China Telecom and China Mobile this quarter," she said. China Telecom and China Mobile are two of the country's main telecommunication operators, which together have 850 million mobile customers.

This is the first time Yulong broke into Canalys' list of top five smartphone vendors in China, according to Peng. Two other Chinese vendors -- ZTE and Huawei -- were close behind, with their shipments only slightly varying. The three companies each had about a 10 percent share of the market.

As for Apple, the company's own smartphone shipments in the third quarter grew year-over-year, but were still outpaced by the shipments from local rivals, according to Peng. Apple ranked sixth, and had a market share of 8 percent, a 1 point drop from the previous quarter.

"(The Chinese vendors) are selling their devices at a very low price that can attract first-time smartphone users," she said. "Apple's iPhone is still very expensive and it kind of limits their expansion in the country, when the target audience of where the growth is coming from is at the low-end."

In the third quarter, smartphone shipments in the country reached more than 50 million units, with China accounting for over a third of the world's total smartphone shipments, Peng said. In the second quarter, Chinese vendors dominated the country's smartphone space with a 60 percent share, and Peng expects that figure to increase over time.

The best selling smartphones in China are those bought with or without a contract for a price of between $70 to $120, she added. In contrast, Apple's iPhone 4S starts at $713 in the local market when bought without a contract.

Apple could however see its smartphone share surge in China later this year with the launch of the iPhone 5. Apple CEO Tim Cook said in a conference call last month he expects the product will officially come to the country in December.

"I'm sure Apple will have a very big increase in shipments," said Peng, who added that Chinese consumers were holding off from buying the iPhone 4S in favor of the iPhone 5.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags HuaweiApplesamsungconsumer electronicssmartphonesiPhoneZTEAndroidLenovo

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Michael Kan

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?