Galaxy S4 threatens iPhone in China

A recent survey shows more smartphone users interested in the new offering.

By 247 Wall St. Apr 15, 2013 11:52AM

iPhone AppleBy Paul Ausick


More than 50% of China's iPhone users are considering the purchase of a Samsung Galaxy S4 smartphone when the new phone makes its appearance in China. On top of that, more than 40% of users of other brands of smartphones are also contemplating a switch. Meanwhile, some 60% of current Samsung users are interested in purchasing the new phone.


This is not good news for Apple (AAPL), Nokia (NOK), Huawei, HTC or the other smartphone makers with a share of the Chinese market.


Samsung (SSNLF) already holds the market share lead in China, with more than 20% of users, according to a new survey from TrendForce. Nokia, with 12.3%, is second, and Apple is third with 9.6% share. Of those surveyed, only 7.1% do not currently own a smartphone.


With smartphones having penetrated the Chinese market so thoroughly, new customers must be poached from other vendors, and that is what Samsung has set about doing. Back when Apple dominated the smartphone market, the company could depend on nearly 70% of current users purchasing a new phone. Samsung's numbers now approach that level in China.


One issue that may dampen sales of the new Galaxy phone in China is its price, which is expected to be in the range of 4,000 yuan to 5,000 yuan (around $800). According to TrendForce, less than a quarter of those surveyed are willing to pay that much, and only 20% are willing to pay more than 5,000 yuan. The Chinese government's recent steps to rein in spending among the country's rich could contribute to lower sales than the TrendForce numbers might indicate.


The Galaxy S4 will not be available until the end of April, and sales data will not be available until sometime after that. It is entirely possible that other surveys we have seen saying that sales will explode on the low-end of the price scale will vault one of China's domestic suppliers, or even Nokia, into a stronger market share position.


One last thing to note: BlackBerry (BBRY) is not even on the charts in China.


Trendforce chart

More from 24/7 Wall St.

2Comments
Apr 15, 2013 1:11PM
avatar
Wind Mobile Moblicity and others are taking GS4 Pre orders

Source: http://bit.ly/ZfAAhZ
Apr 15, 2013 11:58AM
avatar
OMG time to panic sell aapl.  Take whatever you can get before it implodes.
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

120
120 rated 1
265
265 rated 2
460
460 rated 3
719
719 rated 4
629
629 rated 5
629
629 rated 6
622
622 rated 7
437
437 rated 8
319
319 rated 9
116
116 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
BBBYBED BATH & BEYOND INC10
FOXATWENTY-FIRST CENTURY FOX Inc CLASS A10
TWXTIME WARNER Inc10
COPCONOCOPHILLIPS9
HDHOME DEPOT Inc9
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.