Apple’s Challenge in China

Topics: Apple Inc., IPhone OS, Mobile phone Pages: 7 (2498 words) Published: April 7, 2013
Apple’s challenge in China

Abstract
Apple is a fantastic electronic company which has a certain status in the world by bringing numerous amazing shows. In recent years, the impression that Apple left for China has been quickly transferred from initial accepted to widely used by Chinese consumers. Choosing Apple’s devices will be the first consideration for Chinese when they are purchasing electronic products. The sales volume of Apple’s goods is increasing day by day, while the number of difficulties that it meets is growing in the same speed. This essay introduces some Apple’s threats from the technical area in China and explain how Apple cope with these challenges. The first one is that Apple’s products’ unique but less innovated properties are copied even robbed by its competitors. The second one is that hackers attacked Apple’s device to make consumers buy and use those more conveniently but Apple lose its profit. The final threat is also come from hackers but impacts on Mac computers’ security system, which is suffered from an unprepared attacking. These challenges may be tip of the iceberg, but the great effort of Apple can not be ignored. In order to go step further in the future, Apple must strengthen its ability in covering these problems and develop new strategies for it operation system. In the final the part of essay, there are some recommendations for Apple to think about its future in Chinese market. Since there has been a good start in China, Apple have to put it proceed.

Introduction
Apple is an American electronic brand which was set up by Steve Jobs, Steve Wozniak and Ronald Wayne in 1976. After decades of effort, Apple’s constant innovation changed its fate from loss to profit and produced a series of electronic products, such as iPod, iPhone, iMac and iPad which makes music and mobile phone reflect their better value. In 1990s, Apple entered Chinese market in form of setting up an office in Beijing without any significant gains. After signing a deal with China Unicom and bringing iPhone 3G into Chinese market in October, 2009, the income of Apple was becoming out of control (Toto 2009). Nowadays, there is no doubt that Apple has been deeply rooted into consumers’ mind and being regarded as a symbol of the trend around the world. According to a survey (Anonymous 2011), Apple got 100 billion dollar of revenue by selling its products, including smartphones, computers, apps and software in 2011. When looking forward to the future development, Apple wants to set up its retail stores in China as many as possible. Firstly, this essay will discuss how Apple does its international business in China and some achievements that it has already made. After analyzing this, the second part focuses on the key challenge which Apple has to pay attention to and the solutions for this challenge will be emphasized to evaluate whether Apple did well in solving or not. Finally, there will be some recommendations to help Apple go further in the future. While challenge exists everywhere, methods can be found only if thinking about it.

Apple in China
Actually, the first time for Chinese to know and accept Apple is that its iPhone 3G entered into Chinese market. Toto (2009) illustrates that Apple had seized a huge electronic market in the world which possesses the largest population of 700 million mobile phone users at that moment. When comparing with American consumers, it only had 270 million mobile phone users. From 2009 to 2012, Apple has released a lot of new products, like iPhone 3GS, iPhone 4, iPod Touch, and so on. In addition, the profit that it gained makes managers can not believe their eyes. Lin (cited in Tsuruoka 2012) gives a fact that Apple occupied over 80% of the profits in Chinese mobile phone market which left other competitors far behind. So it can be seen that Chinese consumers’ pursuit of Apple’s products has been obsessed with a state. For example, when the latest model, the iPhone...
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