Threats to Samsung and Apple in China market from domestic competitors

Charles Arthur reports on the market for smartphones in China. For the iPhone China has recently been the market with the most potential for growth, accounting for one third of global smartphone sales. However the rapid market expansion of Chinese firms including Huawei, Xiaomi, Vivo and Oppo have already pushed Samsung out of the top 5. Samsung was more vulnerable to competition on price from handsets using Android software. Apple with its iOS software and distribution through China Mobile has so far maintained its premium pricing. However with declining growth in China, the demand for prestigious high cost Apple products may also suffer due to the reduced spending power of luxury end consumers in China.