Apples iphone in China : Can Apple cash in on the Worlds biggest Mobile market?

Apples iphone in China : Can Apple cash in on the Worlds biggest Mobile market? Presented by, J. Hebziba Beula Pendem RajasiriIntroductionhow telecommunication entered into the chinese marketChinese consumer preferenceGrey marketApple entry into the chinese marketWill apple suceed in its entry

Mobile handset in chinaChinese mobile foray started in 1980Launched by Ministry of post telecommunication began with Total access communnication systemTelecommunication was supported by motorola and sweeden ericsson handsetIn 1994 chinese telecommunication underwent transformation

China unicom was incorporated to improve qualtyIntroduced GSM 2GRegistered as separate entity CHINA TELECOM1998 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 alcatel1998 domestic players entered into the marketLocal brands like ningo bird, konka and TCL challenged motorola,ericsson and nokiaLocal 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 firms2-new local firms have continuosly entered the market3- change in consumer preferences4- diversification in sales channelsIn 2008, chinese telecommunication industry again underwent restructuring Restructuring include creation of 3 full service state owned telecom operaters - china mobile, china unicom and china telecom3G licenses were provided for themChinese consumer preferenceWhen 3G was introduced CTR conducted a survey in which CHINA MOBILE got the highest ratingAs the technology changes handset features was also changed depending on the requirementSo 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 marketApple mobile was one among them 1.5 million apple iPhones mobiles was already used in china Apple iPhone in Chinese marketApple had its business globally but it couldnt get into the giant market for long timeAfter long negotiations for about18 months with China mobile refused to accept Apples requestThen Apple made an agreement with China UnicomThen iphone came into the market officiallyEven 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 brandsSo Apple had to face the following challenges1- Fight against the stiff competition in Chinese Smartphone segment 2-huge grey market in china3- apple handset in china are released without the Wi-Fi functionSince Apple dint get a chance to make agreement with China mobile it was a great drawbackAnd China Unicom market is smaller so it cannot reach much customersChina mobile being a giant in telecommunication made agreement with Motorola, Samsung and HTCWhich leads to the question whether Apple can survive in Chinese market THANK YOU