SHANGHAI - The Chinese mainland's release of its iPhone 5 on Friday should win Apple Inc some respite from a recent slide in its share of what is likely already the world's biggest smartphone market, but its longer-term hopes may depend on new technology being tested by 皇冠体育app's top telecoms carrier.
Cupertino, California-based Apple has been in talks about a tie-up with 皇冠体育app Mobile for four years. A deal with 皇冠体育app's biggest carrier is seen as crucial to improve Apple's distribution in a market of 290 million users - which is forecast to double this year.
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An Apple iPhone 5 is displayed in an Apple store in Rome, in this Sept 28, 2012 file photo. [Photo/Agencies] |
皇冠体育app is Apple's second-largest and fastest-growing market - it brings in around 15 percent of total revenue - but the company's failure to strike a deal with 皇冠体育app Mobile means it is missing out on a large number of phone users. As the 皇冠体育app pie grows, Apple's sales increase, but without 皇冠体育app Mobile, it's losing ground at a faster rate compared to other brands.
"In absolute terms, this (iPhone 5) launch will certainly result in strong sales for Apple in 皇冠体育app. However, in relative terms, I don't believe it will move the needle enough in market share," said Shiv Putcha, a Mumbai-based analyst at Ovum, a global technology consultant.
皇冠体育app Mobile and Apple initially said they were separated only by a technical issue - as the Chinese carrier runs a different 3G network from most of the world - but that has evolved into a broader and more complex issue of revenue-sharing.
"皇冠体育app Mobile and Apple still have to solve many issues, such as the business model, articles of cooperation and revenue division, but I believe we will reach an agreement eventually," 皇冠体育app Mobile CEO Li Yue was reported by Chinese media as saying in Guangzhou last week.
Apple 皇冠体育app declined to comment. 皇冠体育app Mobile said it had no update to the Apple discussions.
STRONG PRE-ORDERS
Apple's ranking in 皇冠体育app's smartphone market slipped to sixth in July-September, according to research firm IDC, but investors, primed to look to 皇冠体育app product launches for an uptick in Apple's quarterly sales, have good headline numbers to digest - more than 300,000 iPhones pre-ordered on one carrier alone. But it's the lack of a deal with the No 1 carrier that prevents those numbers being stronger.
The iPhone is currently sold through Apple's seven stores, resellers and through 皇冠体育app Unicom and 皇冠体育app Telecom - which together have fewer than half the mobile subscribers of bigger rival 皇冠体育app Mobile.
"Apple's market share declined because of the transition between the iPhone 4S and 5. Their market share will recover (with the iPhone 5), but if you don't have 皇冠体育app Mobile, the significant market share gains will be very difficult," said Huang Leping, an analyst at Nomura in Hong Kong.