Thanks to the strong development of the electronics industry worldwide has helped to integrate the most advanced technology for smartphone devices and decrease time to produce. On the other hand, this is also a strong impact on smart mobile market when the price of the product line was decreased quickly.
China is considered to have vast mobile phone market and it is the most developed market in the world. Their people now not only choose the cheap smartphone line instead of high-end models and even demand to buy their mobile devices has greatly reduced than before.
However, there is a great impact which caused the Chinese mobile market change markedly. According to the International Data Corporation (IDC), the average price of smartphones has increased significantly, from 192 USD in the third quarter to 239 USD in the fourth quarter of year 2014 and the first quarter of this year rose to over 263 USD, going against the trend of the previous four years.
Bryan Ma- IDC analyst said that the cause of this sudden change was due to Apple. This company has really captured users’ sentiment when launching more expensive product lines with the big screen. This has changed the smartphone market in China and help Apple rise in the battle of market share.
The result of this change is a very important recognition for Tim Cook. Previously, CEO of Apple got big pressure from analysts and shareholders to launch plastic shell Iphone 5C smartphone line with cheap price. After that unsuccessful revolution, Tim Cook found practical solutions to increase the market share of Apple. They produced devices with larger screen. And the shareholders finally recognize his success with Apple’s high profit in recent quarters.
Not only Apple, but Samsung also has been successful in the Chinese mobile market with Galaxy S6 and S6 edge after a period of struggle with cheap smartphones. This dispels the thoughts of the Chinese people when many people suppose that they are not willing to spend money on high-end mobile phones.
There are still a large number of Chinese people prefering mobile lines which are less money. That is why the production smartphone company in the Chinese received less attention such as Lenovo, Huawei, and Xiaomi. They still continue competing to decrease price for products. However, victory is belonging to foreign companies with outstanding profit. And perhaps after the success of Apple, mobile industry of China will reassess of what their customers really want.