“A day without Apple, the thought scares me.” This is the general reaction of Americans when inquired on their indulgence with the tech giant’s gadgets. The mere idea of Apple not performing well, in the Smartphone category, in other countries can’t just be swallowed by the citizens of America. But, that’s the bitter truth. Yes, recent statistics have unveiled the fact that Apple has been lagging behind four local handset manufacturer competitors, in China.
Maybe Apple is trying to push its way through, but the climb to the top is a struggling one. Instead of crushing its competitors, the giant has joined the race. China Wireless, one of the competitors, has shown hardly any depreciation, in the sale figures since Apple’s inception into the field. With the recently launched Coolpad 8060, the company plans to increase its sales figures by 40%. The pricing also affects the sales of Apple’s iPhone. The Coolpad is available at less than $100, which is much less as compared to iPhone 5.
There’s a high deal of hue and cry, the paparazzi and the hype created when Apple goes into the launching mode in China, for its products. But, the real word is that a high percentage of the consumer population in China, simply can’t afford an iPhone. Samsung, due to its basic bifurcated product portfolio, caters to a huge number of users and is the leader in the entire region. So, Apple has to pull up its socks pretty soon and start playing the number game, by competing.
China, with a population statistics of one billion, is an economy that has the potential to produce effective results for a company, where commerce is concerned. It has been noticed that the region attracts a prospective MNC to expand and is open to all global changes.
The Actual Question is:
What is keeping Apple away from fitting in and making it to the top?
Well, the price factor is a genuine reason, but there’s something else too that’s posing the company problems and making it face tough times. It’s not that Apple alone hasn’t fared well. There are more companies that have been left in the lurch. Best Buy, an American company, is a famous example that failed to make a mark in China. Others include eBay and Walmart. The market in China is a highly fluctuating one and to survive, you need to adapt and that too quickly. Else, you could be caught off-guard.
The reason for the failure of these companies is that they continued to support the same business-model they carried out in America. This is acceptable as long as a stake in a company is considered, but requires some great efforts to pull-out a profit.
The basic requirement is to adapt to the local market. A sub-$100 iPhone, mini Apple stores is what the situation and the consumers demand. Once Apple understands the basic needs of the users and crops down, the scenario can be totally different.