How Apple Lost China

Two years ago, Oppo and Vivo couldn’t crack the top five in China’s smartphone market. Now they outrank everyone after elbowing Apple aside, thanks to people like Cheng Xiaoning.

Cheng runs a thriving electronics store in the rural town of Miaoxia, tapping into her WeChat social media account to promote the brands that pay the biggest commission, and in her case that’s Oppo and Vivo. While such payments start at about 40 yuan (USD6), they escalate for more expensive handsets and reach almost 200 yuan for Oppo’s high-end smartphones.

“That’s why I like to introduce the Oppo R9 Plus to potential customers,” she said. “Business has been perfect, actually never been better.”

Cheng and tens of thousands of like-minded boosters form the vanguard of the pair’s charge against Apple Inc. and Samsung Electronics Co. Working with the local stores that dominate sales in China’s far-flung provinces, Oppo and Vivo came out of nowhere to upend the industry order and squeeze out former local darling Xiaomi Corp. Their labels graced one out of every three smartphones sold within China in the third quarter, while the iPhone’s market share at 7 percent stood at its lowest in almost three years. READ MORE

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Extra 2692 – How Apple Lost China