In recent consulting work in the PRC we have noticed that Apple is struggling to gain ground against Samsung. So, it is not surprising that the new CEO of Apple is wooing the large phone service providers in the PRC.  http://www.microsofttranslator.com/BV.aspx?ref=IE8Activity&a=http%3A%2F%2Ftech.sina.com.cn%2Ft%2F2013-07-31%2F02048590016.shtml

Also Apple has relied on the notorious Foxconn to deliver key iPhone products to the market.  Unfortunately because of really horrendous QA procedures and supplier bribes, Apple returned close to 8 million units back to Foxconn.  See here: http://www.microsofttranslator.com/BV.aspx?ref=IE8Activity&a=http%3A%2F%2Fnews.e23.cn%2Fcontent%2F2013-04-23%2F2013042300476.html

Samsung is winning because of taking the time to invest in local stores and understanding the market.  Watch Lenovo, Huawei, & Samsung swing the revenue streams that Apple desires from the PRC consumer to their P&Ls from Apple’s.