Why China Has Changed Opinion on Apple (AAPL)?
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When Apple Inc. (NASDAQ: AAPL) launched the iPhone for the first time in China in 2009, many consumers dismissed the device and those using the smartphone were getting them cheaper off the gray market.
Fast-forward to present day and Apple's China business is booming at an astronomical rate and consumers are lining up in the country to get on waiting lists for iPhones and iPads, despite the products selling for 30 percent more than in the U.S.
So what was the answer for CEO Steve Jobs? How did he get his product moving in one of the world's most important consumer markets?
First off, Apple makes products consumers want, that's just a fact. But in China things were a little more of a hassle, as consumers were buying cracked versions of the iPhone brought in from the U.S. and Hong Kong, while legitimate Apple products were offered through local electronic markets from sketchy retailers.
Now Apple has started to build its Meccas of retail across the country with its Shanghai flagship store being the most profitable per square foot in the world, which face little competition from competing retailers and are offering the same shopping experience that Apple has trademarked in the U.S.
Also, Apple learned from the mistake of waiting to long to get the iPhone into the Chinese market by releasing the iPad early following its launch of the tablet device in the U.S.
The evidence of rapid growth is there, as Apple reported that in the first quarter that sales in the Asia/Pacific region jumped more than 50 percent.
Apple now knows not to keep China waiting.
Fast-forward to present day and Apple's China business is booming at an astronomical rate and consumers are lining up in the country to get on waiting lists for iPhones and iPads, despite the products selling for 30 percent more than in the U.S.
So what was the answer for CEO Steve Jobs? How did he get his product moving in one of the world's most important consumer markets?
First off, Apple makes products consumers want, that's just a fact. But in China things were a little more of a hassle, as consumers were buying cracked versions of the iPhone brought in from the U.S. and Hong Kong, while legitimate Apple products were offered through local electronic markets from sketchy retailers.
Now Apple has started to build its Meccas of retail across the country with its Shanghai flagship store being the most profitable per square foot in the world, which face little competition from competing retailers and are offering the same shopping experience that Apple has trademarked in the U.S.
Also, Apple learned from the mistake of waiting to long to get the iPhone into the Chinese market by releasing the iPad early following its launch of the tablet device in the U.S.
The evidence of rapid growth is there, as Apple reported that in the first quarter that sales in the Asia/Pacific region jumped more than 50 percent.
Apple now knows not to keep China waiting.
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