With China’s population, it isn’t a surprise that companies such as Apple are considering it a key market. It also isn’t a surprise that local OEMs such as Xiaomi, Oppo, and Huawei have managed to thrive despite not having much of a presence outside of China or the Asian region. However as is the case with all markets, eventually it will reach saturation and it seems that that has happened to China already.
This is according to a recent study conducted by analyst firm IDC. According to their findings, the first quarter of 2015 saw smartphone shipments to the country shrink for the first time in six years. The number dropped to 98.8 million which is actually a 4.3% decrease from the same period last year, which according to IDC is an indication of the market reaching saturation.
While a shrinkage of 4.3% might not seem like much to many, it has huge implications for companies such as Apple and Samsung moving forward. Now instead of being able to court new customers, companies will have to shift their focus and strategy into maintaining existing ones. Thankfully Apple appears to be in a rather good position in the Chinese market.
It has been estimated that Apple commands about 14.7% of the Chinese market, while Chinese OEMs such as Xiaomi and Huawei come in at 13.7% and 11.4% respectively. Samsung on the other hand has slipped and ceded their position to Xiaomi, coming in fourth with a market share of 9.7%.
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