Apple Inc. (NASDAQ:AAPL)’s iOS Growth Rate May Have Cooled In China

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It has emerged that the growth rate of Apple Inc. (NASDAQ:AAPL)’s iOS slowed down in China in the three months to January 2016 compared to a similar period a year ago. Reponsibility for the slowdown is being tied to customers holding off on smartphone purchases to wait for Chinese New Year promotions the start in early February.

However, Apple Inc. (NASDAQ:AAPL)’s share of the Chinese smartphone market remained unchanged from a year ago despite the slowdown in iOS growth in the last two months of 2015 and the first month of 2016.

According to Kantar, the possible reason uptake of iOS devices cooled in the cited period may have much to do with consumer behavioral changes. In particular, the research firm believes that price-conscious consumers may have put their purchase of new iPhones on hold to take advantage of the New Year offers. In Chinese New Year deals start rolling out in early February.

Bestselling iPhone models

Despite the slowdown in iOS growth in the three months, certain iPhone models were flying off the shelves. Kantar cites that iPhone 6S series and iPhone 6 were the top selling smartphones models in urban China during the three months under review.

Market share

Apple Inc. (NASDAQ:AAPL) still held 25% of the Chinese smartphone market share in the three months ending January 2016, making it the most popular smartphone brand in the Chinese market. The 25% market share suggests that Apple is holding onto its fraction of the market despite signs of smartphone saturation in China.

After Apple Inc. (NASDAQ:AAPL), Huawei holds the second-largest share of the Chinese smartphone market at 24.3%. Xiaomi comes in the third place, but its share of the market contracted during the three months period.

Huawei seems to be doing well even outside its home market. It is the maker of the second most popular Android smartphone brand in Europe.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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