Apples iphone in China : Can

Apple cash in on the Worlds

biggest Mobile market?
Presented by,
J. Hebziba Beula
Pendem Rajasiri

Introduction
how telecommunication entered into
the chinese market
Chinese consumer preference
Grey market
Apple entry into the chinese market
Will apple suceed in its entry

Mobile handset in china

Chinese mobile foray started in 1980
Launched by Ministry of post
telecommunication began with Total
access communnication system
Telecommunication was supported by
motorola and sweeden ericsson
handset
In 1994 chinese telecommunication
underwent transformation

 China unicom was incorporated to improve

qualty
Introduced GSM 2G
Registered as separate entity CHINA TELECOM
1998 CDMA technology was introduced in
chinese market
For 4 years from 1996,global handset brands like
motorola,ericsson and nokia held 80% of market
share while 20% share by foreign brands like
philips,Siemens, and alcatel

 1998 domestic players entered into

the market
Local brands like ningo bird, konka
and TCL challenged
motorola,ericsson and nokia
Local brand lacked
telecommunication expertise so they
partnered with korean, european and
japenase companies

 Local brands has to set back because

foreign brands gave reduced price handset
with higher facilities
Kimura a researcher stated SALES
PROMOTION to PRODUCT DEVELOPMENT
CAPABILITY
1- change in the competition strategy of
the foreign affiliated firms
2-new local firms have continuosly entered
the market

 3- change in consumer preferences

4- diversification in sales channels
In 2008, chinese telecommunication
industry again underwent
restructuring
Restructuring include creation of 3
full service state owned telecom
operaters - china mobile, china
unicom and china telecom
3G licenses were provided for them

Chinese consumer
preference
When 3G was introduced CTR
conducted a survey in which CHINA
MOBILE got the highest rating
As the technology changes handset
features was also changed depending
on the requirement
So Sony , Motorola, Samsung has to
face these challenges and provide
attractive mobiles in the market.

Grey Market
fake mobiles unrecognized by the
government started to get into
market with advanced features
Smuggled mobiles was also into
market
Apple mobile was one among them
1.5 million apple iPhones mobiles
was already used in china

Apple iPhone in Chinese

market
Apple had its business globally but it couldnt
get into the giant market for long time
After long negotiations for about18 months
with China mobile refused to accept Apples
request
Then Apple made an agreement with China
Unicom
Then iphone came into the market officially
Even though it had great features customers
felt it was too costly for them

 But the draw back was Chinese market was

already captured by Nokia and several other
brands
So Apple had to face the following
challenges
1- Fight against the stiff competition in
Chinese Smartphone segment
2-huge grey market in china
3- apple handset in china are released
without the Wi-Fi function

 Since Apple dint get a chance to

make agreement with China mobile it
was a great drawback
And China Unicom market is smaller
so it cannot reach much customers
China mobile being a giant in
telecommunication made agreement
with Motorola, Samsung and HTC

 Which leads to the question whether

Apple can survive in Chinese market

THANK YOU