Tag: Apple

Apple and China Mobile Teaming Up

Apple and China Mobile have just teamed up and will soon announce a deal. The deal will allow Apple to get into the massive Chinese market. This includes China Mobile’s 760 million subscribers.

With the agreement, iPhone 5s and 5c models will be available at China Mobile and Apple retails stores throughout mainland China from January 17th.

As China mobile Chairman Xi Gouhua said, “We know there are many China Mobile customers and potential new customers who are anxiously awaiting the incredible combination of iPhone on China Mobile’s leading network.”

Apple chief executive Tim Cook said: “China is an extremely important market for Apple and our partnership with China Mobile presents us the opportunity to bring iPhone to the customers of the world’s largest network.”

Apple iPhone5 Makes Quiet Entry Into China

Certainly, for anyone interested in investing in China and in understanding the Chinese financial mentality, the debut of the iPhone 5 is big news. Apple Inc.’s iPhone 5 debuted in mainland China on Friday…to very little reception.

The arrival of the iPhone 4S in January sparked a fury of interest – but this one was just the opposite. Two iron fences were actually placed in front of the Joy City Apple store this week to control the crowds, but there were not crowds in site.

As Wang Lu, a woman in her 20s said, “I was told that I had to make a reservation online first. Even if I apply right away, there is no chance I can pick up a phone today.” Apple actually created a reserve-and-pickup policy after the chaos that they experienced in January. Therefore, it’s hard to know if the quieter atmosphere was entirely due to a lack of interest or to the new processing system. Customers today have to apply online and then attend a drawing to secure a phone.

Analysts have said that, in addition to the new selling policy, the ample distribution channels and stock has resulted in a much lower-key welcome for this phone.

As one Beijing-based telecom industry insider, Xiang Ligang, said: “If customers can buy the iPhone 5 anywhere, why bother to buy one at Apple flagship stores or from scalpers?”

China: The “Last Untapped Market on Earth”

China consumer spending is on the rise, and it’s showing that China can be a powerhouse for companies selling a vast range of products.  At the Central Economic Work Conference in December, policymakers said that they will "increase the proportion of the middle class" in 2012 and that this will transform the country from one where products are made to one where they are purchased.

Retail sales rose 17% from January through November of 2011.  President Hu Jintao is hoping that retail sales will increase by more than 15% annually over the coming five years and that they will get to 32 trillion yuan by 2015.

In addition, by 2015, China may actually beat out Japan as the world’s center for luxury market goods, according to research that was released by McKinsey & Company.

And companies are starting to follow suit. Apple Inc. recently changed its line that says, “Designed din California, Made in China” to say “Designed in California, Made for China” for its new Shanghai store.

Tesco China, the UK-based grocery and merchandising retailer has more than 100 outlets in China.  Their corporate affairs senior vice president Lu Haiqing said, that China is the "last untapped market on Earth."