Smartphone companies are in battle in China, the world's largest smartphone market. While not yet the largest in terms of profit, it surpassed the United States in 2011 to register the world's highest smartphone sales volume, according to Strategy Analytics, an international market research and consulting firm. In this fiercely competitive environment, Apple, which revolutionized the smartphone world in 2007 with the release of the first iPhone, now finds itself playing defense in China as other companies step up their game.

Unbeatable Apple?

The California-based Apple company claims its sales in China are still strong, citing the 2 million units sold in the first three days after the iPhone 5 became available in China in December. The pricey brand's reputation and sleek designs have turned it into a status symbol, making it a must-buy for many Chinese consumers. While some consumers find the brand's prestige initially off-putting, they are eventually seduced by the iPhone's attributes.

"For some people in China, having an iPhone is mostly about status. First I was against iPhones because I felt like they had become tacky. So I bought an HTC phone instead; I wanted to support the little guy," said Frank Mok, an educational consultant and Apple convert describing his pre-iPhone days. "But the [HTC] phone was difficult to use. Then I got into iPads and liked them so much that I decided to try out an iPhone. iPhones are so easy to use; they're practically addictive."

Samsung's size advantage

But major international competitors like Samsung, whose phones feature a host of color options, larger screens and a smaller price tag, are attracting legions of buyers. A new Samsung Galaxy SIII will set consumers back 3,420-4,900 yuan ($550-788), versus 5,288-6,888 yuan ($850-1,100) for an iPhone 5.

Shi Zhenyi, who describes herself as the mostly satisfied owner of a white Samsung Galaxy SII, feels that an iPhone would be easier to use and give her access to better apps, but added, "I really like my phone's look and the screen size. In those aspects I prefer my [Samsung] phone to an iPhone."

Considering that Samsung is currently the leading seller of smartphones in China, it seems that many Chinese consumers feel the same way. But, as many smartphone users use their devices more to watch television, play games or surf the Internet than they do to make phone calls, it should be no surprise that screen size is important to consumers.

Major players

Chinese tech firms like ZTE, Huawei and Lenovo are also fighting hard for a share of their country's market. Prior to the iPhone 5's debut in December, research firm International Data Corp. (IDC) reported that these three domestic companies all ranked ahead of Apple on China's smartphone market.

Finnish telecom giant Nokia is also staying competitive, announcing in early December that it would be partnering with China Mobile, the largest mobile service provider in China. The Nokia Lumia 920 is now available to Chinese buyers for 4,450 yuan ($716). This, along with a holiday sales bump, has led the Nokia to report a dramatic increase in smartphone sales for the last quarter of 2012. Observers say this could signal a revival for Nokia, and that it may regain its past dominance on the Chinese smartphone market, where it currently trails behind Apple in market share rankings.

Competition in China's large smartphone market is likely to stay fierce as consumer spending in the world's second largest economy continues to grow. But consumers can be content knowing that the world's top technology companies are fighting hard to bring them better phones for lower prices.