Tuesday, March 26, 2013

AAPL: Why China Cannot Be Apple's No.1 Market

Why China Cannot Be Apple's No.1 Market
by Sneha Shah

Introduction
Apple (AAPL) is the world's largest technology company in terms of market capitalization and generated over $54 billion in revenues in the last fiscal year. However, the stock has been under pressure over the last few months due to growth and competition concerns. Apple has a sizeable market share of the US market and is now putting more resources in expanding into other big countries like India and China. The company has managed to win substantial share of India's smartphone market in recent times due to aggressive financing and marketing schemes. The company management has been equally aggressive in China, which it hopes will surpass USA as its No.1 market in the near future. The company plans to open many more stores to increase its street level presence in the world's most populous country. It is also trying hard to sign a deal with the world's largest telecom carrier China Mobile to sell iPhones. China is much more crucial than India to Apple's plans because not only does China have more people but also has a much higher per capital income. However, I feel that Apple might face a number of hurdles as it tries to catch a larger share of the Chinese technology spending. I am listing out some of those concerns. read more »

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