Apple CEO Tim Cook believes that China will soon become the largest market for his company’s products. Unlike other technology
firms, Apple does not have to deal with tight censorship from the Chinese government. This is because they produce hardware, rather
than internet services (like Facebook and Google), which are highly regulated. One service that Apple does provide, iTunes, has not
caught on in China, but not because of government oversight. Rather, the Chinese are more inclined to us “jail-breaks” and other
methods to put music and applications on their devices for free.
Apple products are also becoming a kind of status symbol to the tech-savy Chinese. For middle-class Chinese who cannot afford a fancy
car, an iPad is often a second alternative. The writer of the article talked to one businessman who had filled the trunk of his car with
20 iPads to use as gifts for people he needed to build relationships with. The man explained that iPads were especially desired by
Chinese government officials. Additionally, iPhones are now supported by 2 of the top 3 Chinese telecommunication companies. The
expansion of Apple in China is just one example of the emergence of modern China, and the willingness and desire of the Chinese
people to embrace Western technology and ideas.
Story from CNN
http://www.cnn.com/2013/01/15/opinion/chiang-apple-china/index.html?eref=rss_mostpopular
So Apple as a status symbol? But there also needs to be a service infrastructure else it will be limited to major cities. Now that’s a big population, but will Apple be able to achieve much of a market share?
Apple Products to be more affordable in China
To make it easier for the locals to get Apple products, Apple has started offering payment plans for iPhones, iPads and MacBooks. Payment can be made in 3 to 24 months, with interest only kicking in on plans exceeding 18 months. This definitely makes Apple products more affordable and attractive. But with its affordability, will these products still pose the same status symbol as it does now?
Source: To make iPhones more affordable in China, Apple now offering payment plans
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I thought the new payment plans that were mentioned was interesting, especially given that I have heard Apple is also going to try and produce lower-end, more inexpensive iPhones in order to reach a wider market. Perhaps, with a market already well established in the US, Apple plans to ‘test’ the affordable iPhones here before introducing them in China. But overall, it’s interesting to see the technology battle (now with HTC in the mix) in such a tech-savvy country.