Apple's (NASDAQ: AAPL) market share has dropped to 10 percent in China, representing a decline of nearly 50 percent.
This news may not be as troubling as it sounds. According Reuters, the decline was caused by anticipation for the iPhone 5, which is expected to ship in the United States and other regions this September.
(Did Apple help Samsung sell a ton of smartphones? Click here to find out.)
Domestically, the iPhone 4S will celebrate its one-year anniversary this October. If the iPhone 5 arrives next month, the two devices will have been released just 11 months apart.
In China, the release gap could be even shorter. The iPhone 4S did not arrive in that region until January. At the time, the new device was met with a mixture of enthusiasm and violence that nearly led to a riot.
The sharp decline in iPhone 4S sales could inspire Apple to bring the iPhone 5 to China much sooner than anticipated. While the device is unlikely to receive a simultaneous worldwide release in all nations, Apple would be foolish to save the China launch for January 2013.
Unfortunately, the release date might not matter. Chinese consumers showed a lack of interest in Apple products last month when the third-generation iPad was released. While the device sold moderately well in the United States, (albeit with plenty of stock to spare), the new iPad flopped in China.
To be fair, the latest iPad did not arrive in the nation until after rumors of the iPad Mini began to spread. While there were reports of a seven-inch iPad in 2011, the device was largely believed to be a work of fiction until this year. Today, almost everyone is convinced that Apple will soon release a miniature iPad.
It is wholly possible that Chinese consumers were overwhelmed with anticipation for the iPad Mini and decided to bail on the third-generation iPad. If that proves to be the case, Apple could be in trouble.
What, if anything, is stopping the rumor mill from shifting to iPad 4 hype after the iPad Mini is released? The same could be said for iPhone 6 rumors, which will no doubt begin to flourish the moment the fifth iPhone is released. It is a never-ending cycle fueled by eager reporters, fanboy bloggers and a company that is reluctant to talk about its products until just before their release.
Currently, the rumor mill works to Apple's advantage -- at least in America. Without it, the company would not be able to wait until the very last minute to unveil each new device. Consumers need time to think about and plan for major new purchases.
By allowing the media to build hype for new Apple products without facts or any official information, Apple can sit back and enjoy a plethora of free publicity. This means that when the iPhone 5 finally goes on sale, it will feel as if Apple has been hyping its release for the past 10 months. Officially, however, Apple has not.
(For the fastest financial updates, subscribe to Benzinga Pro.)
Follow me @LouisBedigianBZ
