phone Global Marketing Marketing Essay

Iphone Global Marketing Marketing Essay

Perfect combination of internet browser, mobile phone and iPod which not only satisfy the
customer needs but exceed their expectations. Its a perfect match of information,
communication, technology and entertainment which show its heartfelt connection with its
customers.
Target market of iPhone consists of professionals, students, corporate users, and entrepreneurs.
Initially its market is small but with the passage of time decrease in prices and addition of certain
features will increase its market in coming years.
The success of Apple Company In Future lies on its skill to enter the Chinese mobile market. In
this market due to economic, social and cultural differences Apple didnt get the favorable
outcomes. Apple is not feeling comfy with the Chinese Government. This
Government is known for having absolute sovereignty over their customers as well as their
business.
Following is the report that throws light on market position, strength and weaknesses of Apple,
when they entered Chinese market. Then at the end a plan is made that would clear Apples
status in the market.
Introduction
Markets personal computers, digital music players and mobile communication devices are
designed and manufactured by Apple Inc. and it also sells assortments of related software and
networking solutions.
IPod has been a remarkable product of Apple; it has sold for more than 163 million units to date.
As the market of digital music players has filled completely, Apple made a new smart phone that
is known as iPhone. A person who is deliberate for style and would like to enjoy the
entertainment, browse internet, iPhone is the best option for them. IPod, web browsing, email
and personal computer all are combining in single, stylish and easy to use devise, in iPhone.
Many people thought that Apple would not be able to survive in this complex market and in only
2 years they sold more than 21.17 million units. If we compare Apple, it took 3.75 years to sell
that quantity of iPods.
For Apple iPhone is more important than iPod. The market of iPhone is also larger than that of
the iPod. Now the real competition is between the traditional mobiles and smart phones in the
market. In the first quarter of 2009 sales of mobile phones were 269.10 million whereas sales of
smart phones were 36.4 million. The sale of mobile phone dropped 9.4% but smart phone sales
increased by 12.7%.

China is the 3rd largest mobile user nation after India and U.S. To keep the momentum going
Apple needs an excellent international success strategy and China is enormous candidate for that.
10 % of the worlds iPhone market could be made by China because in past two years 26 million
units of mobile phones have been reached and lot of sales have been added by this. Apple will
occupy 5% to 6% global sales if they released iPhone at once. China will become the most
important part of Apples sales as the population becomes wealthier there.
There are 760 million users in the market of iPhone. iPhone is made available to 88 countries of
the world. China mobile and China Unicom are the only two companies in the country that
provide mobile service. Apple has not been succeeded to bring iPhone to China. China mobile
and China Unicom collectively subscribed a base of 565 million users, in which 74% were of the
iPhone market.
1 Situation Analysis
1.1 Stakeholders
Apple got a strategy and according to that, it only got special partners. This strategy allows them
to deal with carriers in each country. Because of this, all the cards are held by carriers and the
mobile manufacturers doesnt have anything. But in China there are only two mobile carriers,
and they are China Mobile and China Unicom.
China Unicom would be an alternative partner of Apple; it got the smallest subscription base of
130 million. This decision wouldnt be the good decision for some reasons.
In recent years China Unicom has been doing efforts against China Mobile. Monthly growth of
China according to Operator proceeds in different ways. Its between China mobile and China
Unicom. China Unicom has adopted strategy to be a world leading broadband communication
and information service provider due to continues decrease in revenue. This change in strategy
put Apple in a difficult situation because if they choose China Unicom as their exclusive partner
they would be taking risk. But China Unicom uses a wireless technology name CDMA. And
iPhone uses GSM technology, so if Apple becomes partner with China Unicom they would have
to build a 2nd version of iPhone, but this decision wouldnt go with Apples strategy.
Thus, if Apple become partner with China Mobile this would be more suitable. Apple have
largest smart phone and China mobile have the largest subscription base.
1.2 Environment Analysis
Now a days China is considered as worlds primary engine for growth. World Band forecast the
continues raise in China GDP growth rate. The largest number of mobile subscription users is
with the China and its growing at over 20% per anum. If its considered that population of China
is 1.3 billion and only 35% uses mobile than it show really important growth opportunity for
Apple. As compare to other emerging economies, China is the biggest receiver of foreign direct
investments worldwide so Apple has an opportunity to jump into this economy and retain its
existing brand image.

1.3 Political and Legal Environment

In China Government has complete control over mobile industry. (MII) Ministry of Information
Industry regulated the Chinese telecom market and all foreign companies need its permission for
entrance. China Unicom and China Mobile are also influenced by Ministry of Information
Industry. Apple should be careful while entering into the market because Chinese government
has absolute control over citizens and companies.
1.4 Economic Environment
Form the past quarter China has been the fastest growing nation with an average annual GDP
growth rate of 10%. 2nd largest economy of the world is of China. And after China, United
Nations. In 2008 United Nations have a GDP of $7.8 trillion.
1.5 Social and Cultural Factors
From past 10 years gross and disposable income has rapidly increased. And it is expected that
this growth would continue till 2015. Since 1980s Engel coefficient has been declining
according statistical figures. Urban and rural populations both are at welfare level and this allows
them to spend some of their income on non basic things. Chinese people who can afford are
more interested in adaption of new technologies and show their strong interest in new products.
Males are more than half of the population and eager to spend more on digital and electronics
product such as mobile phones and digital cameras.
1.6 Technical environment
As China emphasized more on technology and science, it has become better connected to global
economy. Due to this emphasis scientific structure has been improved which results in increase
in available money for research purposes. Chinese government approximately used 2 percent of
its budget on R & D which is equivalent to Japan and U.S spending. In 2G network the solely
population coverage rate of China Mobile is 98%. China mobile havent yet started to operate
with 3g network. If it is used on iPhone this would give best result. Fewer customers are satisfied
in 2G network because internet speed is too slow in it. It is intended that China mobile have 70%
3G coverage at the end of 2009.