The iPhone takes China by storm

About $16.1 billion, or 21.5 per cent, came from “greater China” – mainland China, Hong Kong and Taiwan. That market was up 70 per cent from the same quarter last year.
For Apple, which has struggled to crack the China market, this is a major breakthrough. Research firm Canalys estimates that Apple is now the No 1 smartphone maker in China, up from sixth last October, when it lagged local brands such as Xiaomi.
While another research company, Counterpoint Research, places Apple in third place, there is no denying the trend – Apple’s market share is soaring in China.
The iPhone is also doing well in other Asian countries such as Japan and South Korea. Many people attribute the popularity of the phones in Asia to the bigger screen models – the iPhone 6 and iPhone 6 Plus.
Another factor contributing to the sales surge in China was the deal to sell to the customers of China Mobile, which has the largest wireless network in the world and more than 800 million subscribers.
The roll-out of Apple stores
in China has also greatly helped sales.
Given the saturated markets
in the West, gaining a foothold in China has been vital for Apple.
Its chief executive Tim Cook late
last year said the company was “investing like crazy” in China due
to that market’s amazing potential.
“There are more people graduating into the middle class than any nation on Earth in history.”
Apple is planning to increase its stores in China from 15 to 40 within two years, which should keep the sales momentum going.
It also says it will expand its Apple University to China, which will be the first time the exclusive programme has been fully developed in another region.
This is an indication that Apple wants to extend its presence in China beyond manufacturing, sales and operations to product engineering and design.
That would certainly be an interesting development. As mentioned in earlier columns, the technology industry in China is very dynamic and competitive.
It attracts a lot of investment and has some very good designers and engineers.
One company, Digione, even claims that Apple copied the design for its own handphone 100+V6, although it is more usual for Chinese companies to be accused of copying Apple.
Apple products say on the back, “Designed by Apple in California Assembled in China”. Given Apple’s focus on China and its huge and growing investments there, I wonder if they will ever say “Designed and Assembled by Apple in China”?