The best selling smartphones in China are those bought with or without a contract for a price of between $70 to $120, she added. In contrast, Apple's iPhone 4S starts at $713 in the local market when bought without a contract.
Apple could however see its smartphone share surge in China later this year with the launch of the iPhone 5. Apple CEO Tim Cook said in a conference call last month he expects the product will officially come to the country in December.
"I'm sure Apple will have a very big increase in shipments," said Peng, who added that Chinese consumers were holding off from buying the iPhone 4S in favor of the iPhone 5.