Amid the strong sales of the Apple Inc (NASDAQ:AAPL) iPhone in mainland China, by the end of the year, Alibaba Group Holding Ltd (NYSE:BABA) YunOS is believed to account for 14% of the total market share in the domestic smartphone industry, beating the iOS.
Apple iPhone in China
Sales of Apple iPhone in China is not just threatened by the emerging local smartphone industry. With the new US administration, the iPhone maker is also embattled by its home country’s trade dealings with other nations, particularly China.
US President-elect Donald Trump has always scrutinized the trading relationship between the world’s two biggest economies. As part of his campaign to promote job growth in the US, Trump has promised that he will impose high tax rates for US-based companies that manufacture their products in other countries and ship them back to the US.
Apple has a solid production in China and should Trump carry out his initial platforms, the company will likely take a hit.
YunOS Outside China
According to Strategy Analytics, the total deliveries of smartphones featuring the YunOS this year will be about 100 million units, reiterating the guidance of Alibaba Group Holding.
The YunOS is not just limited to smartphones. It can also serve as an operating system (OS) for set-top boxes, smart home appliances, smart TVs, tablets, among others. As Aiden Yong, YunOS Product Director, noted, the company hopes for the YunOS to become the leading OS in the country.
Despite the rapid growth of the YunOS and its dominance in mainland China, analysts believe that Alibaba Group Holding will have a hard time bringing it to global markets. According to Mark Li, Bernstein senior analyst, should YunOS be able to penetrate global markets, it will nonetheless be limited to cheaper smartphones.
“For China, YunOS addresses the concern that the majority of smartphones in the nation run on an operating system that is ultimately led by a foreign company,(Alphabet Inc (NASDAQ:GOOGL)] Google,” explained Li.
On Monday, Apple has closed at $111.57; Alibaba Group Holding has closed at $93.76; and Alphabet has closed at $785.79.