As Apple iPhone Enters China Will it Save the Company’s Growth

iPhone 5 today hits the Chinese market, which is being seen as the savior for sliding Apple shares. Though Apple is one of biggest smartphone manufacturers but if it’s looking for a long term telecom carrier then its penetration in the Chinese market is necessary.

It has been four years since the Cupertino, California-based Apple has been talking to China’s biggest mobile carrier for distribution. China is one of the world’s fastest growing markets and has quite a potential in the telecom sector. Cracking a deal with China Mobile is absolute otherwise Apple is going to miss a lot of phone users to other brands.

“In absolute terms, this (iPhone 5) launch will certainly result in strong sales for Apple in China. However, in relative terms, I don’t believe it will move the needle enough in market share,” said Shiv Putcha, a Mumbai-based analyst at Ovum, a global technology consultant.

In contrast to long queues at Apple stores in USA when iPhone 5 was launched, Apple store in Shanghai just had one person waiting.

It was reported earlier that China Mobile and Apple were not going along due to some technical issues which later evolved into a revenue-sharing issue.

“China Mobile and Apple still have to solve many issues, such as the business model, articles of cooperation and revenue division, but I believe we will reach an agreement eventually,” China Mobile CEO Li Yue was reported by Chinese media as saying in Guangzhou last week. Apple China declined to comment.

 

 

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