Apple CEO, Tim Cook has told a Chinese government news agency that China would overtake US as Apple’s biggest market.
“China is currently our second largest market. I believe it will become our first. I believe strongly that it will,” said Tim Cook in an interview with the Xinhua News Agency.
While the statement may seem a little vogue at the moment, his proclamation emphasizes the fact that Apple considers China as an important market for selling smartphones.
Mr. Cook, who was in Beijing to meet Chinese regulators and managers of state-owned China Unicom Ltd, did not reveal any concrete information on when he is expecting China to be Apple’s biggest market. However, Apple’s statistics show that sales in China have more than doubled in the last two years. To address the growing demands, the company has also set-up 11 new retail outlets in the previous year. There are also independent stores who sell Apple products.
Despite the increased sales, according to Bloomberg, Apple is still not a dominant force in the world of Chinese mobile. According to the post, 33 percent of Android devices sold in 2012 were bought by Chinese buyers. Despite increasing presence of Apple, Android still rules the market with over 70 percent smartphones in China running Google’s mobile operating system.
Xinhua also reported that Tim Cook did not reply when he was questioned on the rumors surrounding the launch of a cheaper iPhone to take on the Asian markets.
Apple shares dropped below the 500$ threshold, as soon as the word went out that Apple is now shifting its focus on China. Market sentiments suggest that there would be lesser iPhone buying audience in China than Mr. Cook’s expectations.
We, too, feel Mr. Cook is over-estimating the Chinese market. Chinese love tweaking their stuff and with Apple confining down their systems to behave just-the-way-they-like-it, we do not foresee Apple making it through.
What do you feel about this paradigm shift? Can the Cupertino-based-giant’s home ground be any inferior to the Chinese old sod?