Dear Apple Inc. (AAPL), Let’s Call a Spade a Spade

Its not over for Apple, just the beginning

Here is where the story changes. Despite steep competition from Google and Samsung, Apple still has a chance of gnawing into the Chinese market, a huge chance for that matter. Chinese consumers still warm up to Apple Inc. (NASDAQ:AAPL)’s iPhone. This was demonstrated by the two million iPhone 5 units that were sold in the opening weekend of the flagship model’s sales in the region. Currently, Apple comes third in China with an 11% market share. It closely trails Lenovo, which enjoys a 13.2% market share.

The edge that Samsung, and Google for that matter, has in China is that most Samsung devices and other Android-based smartphones are affordable. Most Chinese carriers don’t bear reservations for subsidization. This means that Chinese consumers are, in most cases, compelled to pay the full amount for a smartphone. This compels them to go for cheaper smartphones under the 1000 Yuan, or $160, mark.

In conclusion, there is still a lot of wiggle room for Apple Inc. (NASDAQ:AAPL). Nonetheless, the faster it pushes through with a budget proposition to offset its traditionally high prices, the sooner it will dominate China and a host of other emerging markets, like India and Brazil. Notwithstanding, Apple is still a force to reckon with in the smartphone space.

The article Dear Apple, Let’s Call a Spade a Spade originally appeared on Fool.com and is written by Lennox Yieke.

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