FreeRange

Apple's iPhone Gets a Foot in China's Door with China Unicom

It is important to remember that the Chinese are very much about "face" and status. When you are at one of the frequent communal meals out (family, workers and friends), the cell phones go on the table so people can see what brand you have. Also, the sheer number of BMWs, Mercedes, Audis and other high end cars on the road here is unbelievable, and they are significantly more expensive in China, and usually purchased with cash. The market is ready.


On Aug 30 10:00 AM Constable Odo wrote:

> It would be nice for Apple to get a few more retail stores in China,
> just to let the customers play with some of their products and have
> a presence. I entirely understand that Macs are likely priced well
> out of the typical consumer's range, but there's still the iPods
> that are likely affordable.
>
> I see analysts are saying that Dell will do well in China with their
> $300 computers and Windows 7 along with that mini-something Android-powered
> cellphone. It'll be hard for Apple to compete for market share with
> that really cheap stuff that the Chinese seem to favor.

Apple's iPhone Gets a Foot in China's Door with China Unicom

Your headline is misleading - China has had a foot in the door since the iPhone first went on sale in the US. There are already over an estimated 1 million owners in China without Apple spending a dime on marketing or distribution here as they have all been brought in from outside the country. Further they already have wide distribution of the iPod and iPod Touch, along with their computers (albeit low market share on the computer side).

iPhone in China: Those Who Know Aren't Talking

One other key point regarding Apple's iTunes and Mobileme offerings which makes the business model of consumers paying for these services directly through China Unicom more likely. Not only do most Chinese consumers not have credit cards, the overwhelming majority of those that do WILL NOT use them online, thus Apple needs an alternative payment system to be successful with these offerings. Another big challenge is that even sophisticated IT professionals that use iPhones in China won't download apps to them for fear of getting a virus, thanks to their experience with Windoze. Apple has a big education problem on this front.

Apple Seems Desperate to Enter Chinese Handset Market

There are tremendous opportunities for Apple across the board in China. I have been coming here for 10 years and just recently moved to Beijing from the US. There are iPhones all over the place here (and no, not counterfeit ones) and Apple doesn't even sell them in China - it is estimated around 1 million currently. This is without any promotion or distribution. Further, the halo effect for the mac, as the official iPhone launch happens, will be tremendous. With only one corporate Apple store in China, their is indeed significant room for growth. Their is a huge Chinese middle class now that clamors for high quality name brand products - a good example is the incredible number of Audis, Mercedes and BMWs on the road here. Truly eye opening. Go Apple!