This data kind of flies in the face of what people have told me over and over: Consumers in China want an iPhone, just like everywhere else in the world. But I think pixies point above is a factor here. Also, Apple has lost a few points of smartphone marketshare globally in the past couple of quarters, with analysts believing that consumers are holding off on buying until Apple rolls out the iPhone 5.
iPhone's low market share may be due to its high price. In China, you do not get a $200 iPhone by signing up a 2-year AT&T contract. People has to pay full price, which is still beyond most families' budget. Another thing is in China, you can not access Apple Store, which is a major advantage of owing an iPhone.