Apple Gets Edged Out in China

It is a long-held belief that Apple (NASDAQ: AAPL  ) has nothing to fear in the Chinese market, having made about $24 billion in revenue from China in the 2012 fiscal year. But now it seems, Apple may be under attack in one of its most successful markets. In this video, Motley Fool analyst Lyons George discusses a recent report out of China that the big three names in the Chinese telecommunications industry are putting their weight -- and their marketing dollars -- behind different, lower-cost smartphone manufacturers.

There is absolutely no argument that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.

Read/Post Comments (5) | Recommend This Article (2)

Comments from our Foolish Readers

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  • Report this Comment On November 18, 2012, at 1:50 PM, applefan1 wrote:

    Maybe because Apple doesn't need as much advertising since as Apple builds Apple Stores, customers flock to Apple Stores to buy Apple products versus going to a cell phone carrier's store. As long as customers continue to line up at Apple Stores in China and Apple continues to open up Apple Stores, they'll continue to sell smartphones. Apple also sells quite a few over their site as well.

  • Report this Comment On November 18, 2012, at 2:00 PM, emilevid wrote:

    Wonder where Motley Fool picks up these adolescent analysts to do their bashing. MF is one of the most transparent basher/hypsters. The article was stupid with no concrete data to back it's conclusions---AAPL will lose market share to HTC.

  • Report this Comment On November 18, 2012, at 2:01 PM, H3D wrote:

    Oh, come on.

    This is the same old stories, again and again.

    At least think up some new FUDS.

  • Report this Comment On November 18, 2012, at 5:26 PM, techy46 wrote:

    Nokia's Lumia 920 is #1 ahead of iPhone 5 in China.

  • Report this Comment On November 19, 2012, at 9:41 AM, XMFNoCeilings wrote:

    Hi emilevid,

    My intention here wasn't to make "conclusions", but rather to consider the implications of statements made by the Chair of China Unicom, on behalf of both his company and the country's other major (and state-owned) telecoms, following the recent 18th Party Congress. To wit: "...HTC's smartphones are selling great in China, and their cooperation with China Unicom and with other carriers in China is proceeding smoothly". Mr. Chang also hopes to "implement stronger cooperation with Taiwan companies" going forward.

    Coupled with the immense importance of carrier relationships in this industry and the HTC's triple-digit sequential growth in Chinese unit sales in Q3*, remarks like these certainly merit attention...especially from an investing community that often approaches Apple's success in China as a foregone conclusion.

    I apologize if you had a tough time finding any value in this the first time around...hopefully this puts things in perspective. Thanks for watching, and for the feedback!


    *On a unit sales basis, HTC did indeed outsell Apple in China in Q3, moving around 3 million units.

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