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November 23, 2011

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Domestic prices of smartphones decline

PRICES of domestic smartphones have dropped an average of 15 percent in the third quarter from a year ago as more mid- and low-end devices entered the market, according to a latest industry report.

The average price of Apple's iPhone fell 27 percent to around 5,100 yuan (US$803) by the end of the third quarter, said a report released by Analysys International yesterday.

The prices of the older iPhone 4 model were slashed after the iPhone 4S was introduced in overseas markets in October.

The prices of smartphones running Google's Android operating system tumbled 21 percent to around 1,900 yuan in the domestic retail market as telecommunications operators increased subsidies for customers, according to the Beijing-based research consulting firm.

"Some phone makers are also cutting prices for old models to make way for new product launches next year," said Wang Ying, an analyst with Analysys.

Promotions during the summer and the National Day holiday also caused prices of some older models to decline.

Nokia's Symbian operating system still dominates the mobile phone market with 51.7 percent of the country's overall mobile phone users.

Google's Android system, available in various models of mobile phones, has the second largest share of 22.4 percent, with 6.2 percent for Apple's iOS, according to Analysys.

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