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February 20, 2012

Apple's China Story Falls Apart,as the iPhone gets knocked from No 1 to No 5

Source: StatCounter Global Stats - Mobile Vendor (Beta) Market Share

While Apple became the world's largest smartphone vendor late last year, with a market share rise from 15.8% a year earlier to 23.8%, it slipped to fifth place in China, according to report released Wednesday by research firm Gartner.
As Chinese firms gradually shift toward the higher end of the market, Apple fell to fifth place in the country and was overtaken by domestic low-end smartphone maker ZTE. Apple's share of the Chinese smartphone market slid to 7.5%, from 10.4% for the July-September period of last year.
 "Chinese handset makers  have been have been actively promoting their smartphones with China's three telecoms operators, and local vendors like  ZTE and Huawei  stood to gain gain significant market share. Samsung replaced  Nokia with 24.3 per cent of the market, more than three times Apple's share. Nokia's market share more than halved last year, from above 40 % in  first quarter to below one fifth by the fourth quarter 2011. Gartner attributed ZTE's considerable success — 71 percent growth sequentially — to strong consumer interest in low-cost smartphones.
In the first quarter of last year, ZTE had a market share of just 3 percent, but ended 2011 ranked 4th with more than 11 percent market share.