Apple on cusp of expanding retail presence in China
Apple is on the verge of opening new stores in two Chinese provinces as the company works to build its presence in what is seen as one of world's most lucrative emerging markets.
A report from Reuters on Wednesday noted that the iPhone maker is applying to open new brick-and-mortar locations on the Chinese mainland, which currently only has five stores covering two provinces.
Apple's existing outlets are located in what are arguably the two most affluent areas of China, with two stores operating in the capital city Beijing and three more serving the country's most populous metropolis Shanghai. The proposed new locations would extend the company's reach southward and take root in Shenzhen and Chengdu, where Foxconn and other Apple manufacturing partners run fabrication facilities. Shenzhen is located in the Guangdong province and boasts a population of over 10 million while Chengdu holds over 14 million residents and is located in the Sichuan province.
Wednesday's news is consistent with a previous AppleInsider report which found Apple job listings posted for the two locations.
According to a government official with the Market Supervision Administration, credited only by the last name Ni, Apple submitted documents on Monday to open an outlet at the upscale Holiday Plaza mall in Shenzen's Nanshan district.
"Apple is in the final stage and only needs to submit an environmental permit in order to gain approval," Ni said.
The iPad maker could see some trouble in Shenzhen as the city is home to Proview Technologies, the Chinese company currently suing Apple over the iPad trademark. Most recently the effectively bankrupt company rejected a $16 million offer from Apple to settle the suit and instead continues to press on for a reported $400 million payout.
Proview lawyer Roger Xie said that if Apple tries to sell the iPad in Shenzhen, legal action would be taken.
An official from the Chengdu Industry and Commerce Administration said that the city had granted Apple to set up business operations in May, which coincidentally marked the one year anniversary of a Foxconn iPad factory explosion that took the lives of two workers.
The exact number of stores Apple plans to open in Shenzhen and Chengdu remains unknown.
A report from Reuters on Wednesday noted that the iPhone maker is applying to open new brick-and-mortar locations on the Chinese mainland, which currently only has five stores covering two provinces.
Apple's existing outlets are located in what are arguably the two most affluent areas of China, with two stores operating in the capital city Beijing and three more serving the country's most populous metropolis Shanghai. The proposed new locations would extend the company's reach southward and take root in Shenzhen and Chengdu, where Foxconn and other Apple manufacturing partners run fabrication facilities. Shenzhen is located in the Guangdong province and boasts a population of over 10 million while Chengdu holds over 14 million residents and is located in the Sichuan province.
Wednesday's news is consistent with a previous AppleInsider report which found Apple job listings posted for the two locations.
According to a government official with the Market Supervision Administration, credited only by the last name Ni, Apple submitted documents on Monday to open an outlet at the upscale Holiday Plaza mall in Shenzen's Nanshan district.
"Apple is in the final stage and only needs to submit an environmental permit in order to gain approval," Ni said.
The iPad maker could see some trouble in Shenzhen as the city is home to Proview Technologies, the Chinese company currently suing Apple over the iPad trademark. Most recently the effectively bankrupt company rejected a $16 million offer from Apple to settle the suit and instead continues to press on for a reported $400 million payout.
Proview lawyer Roger Xie said that if Apple tries to sell the iPad in Shenzhen, legal action would be taken.
An official from the Chengdu Industry and Commerce Administration said that the city had granted Apple to set up business operations in May, which coincidentally marked the one year anniversary of a Foxconn iPad factory explosion that took the lives of two workers.
The exact number of stores Apple plans to open in Shenzhen and Chengdu remains unknown.
Comments
Someone really wanted to use the word "cusp" in a headline...
Shenzhen is an interesting place. There is a gigantic mall there that is filled to the rafters with stores selling knock-offs of every brand of consumer good you can imagine (the video is from 2007, but I've been to this mall). All with the knowledge and approval of their government. Good luck to Apple, because people will be walking out the back door with products there. Theft, fraud and bribery is quite common in Shenzhen. It's a great training ground for scammers.
Quote:
Originally Posted by SpamSandwich
Someone really wanted to use the word "cusp" in a headline...
Shenzhen is an interesting place. There is a gigantic mall there that is filled to the rafters with stores selling knock-offs of every brand of consumer good you can imagine (the video is from 2007, but I've been to this mall). All with the knowledge and approval of their government. Good luck to Apple, because people will be walking out the back door with products there. Theft, fraud and bribery is quite common in Shenzhen. It's a great training ground for scammers.
Shenzhen is a prosperous big city where people are willing to spend on high quality products, both local and foreign brands.
Apple will do very well in this huge city, even bigger than Hong Kong.
Quote:
Originally Posted by peter236
Shenzhen is a prosperous big city where people are willing to spend on high quality products, both local and foreign brands.
Apple will do very well in this huge city, even bigger than Hong Kong.
Prosperous due to copying and theft, for one thing. This is undeniable. They have a black market that is more blatant than Mexico's, minus the drug trade.
HUGE potential there.
Speaking of China:
Report: Dozens Arrested After Riot at Foxconn Factory
http://www.pcmag.com/article2/0,2817,2405383,00.asp
The lowlife workers were protecting a thief? Screw those workers.
Quote:
Originally Posted by SpamSandwich
Prosperous due to copying and theft, for one thing. This is undeniable. They have a black market that is more blatant than Mexico's, minus the drug trade.
They are prosperous due to urbanization, and big technology companies like Huawei and ZTE.
Quote:
Originally Posted by peter236
They are prosperous due to urbanization, and big technology companies like Huawei and ZTE.
Have you actually been there? Their marketplace is a knockoff paradise.