Apple Marketshare in China

in General Discussion edited January 2014
Over the summer I had an internship at the representative of Apple in China.

I must say I was extremely dissapointed on the way they are dealing with popularisation of macs.

The main people working there are mostly those who have previously worked for Dell or HP etc., and they're running Apple in the same way.

I personally think that China is one of the best ways to get the marketshare of apple larger. The number of computers in China has already exceeded that of the US and computer sales are just increasing at an incredible rate.

The service in China is bad, and the people at Apple in China are doing nothing to show the People how much better a mac is.

The overall attitued in China is "Oh, Macs, they're expensive and not compatible and its complicated to use. It's just for the pros"

This bothers me not a little.

I think I'll send Steve Jobs a letter.

Does anyone know his email?

I know that most of you are Americans and really couldn't care less about China and perhaps some of you even shun it, but this matter involves Apple



  • Reply 1 of 61
    One of my customers runs an export logistics business and he spends alot of time in China,

    He says in China macs are 700% to 1200% more expensive than PC's and the only people who use them are the state television stations.

    Illustrating one of Apples many problems, emerging markets like China can't be treated the same was as the US... Apple once understood that.

    Selling the same iMac sold in the US for the same price it is sold for in the US is going to get Apple absolutly nowhere.

    Especially in China where wages are so low and very inexpensive PC's are available.

    "Lets see, I can get indoor plumbing, and a PC or I can get just an iMac"

    Doesn't seem like much of a decision does it?

    [ 01-28-2003: Message edited by: Stagflation Steve ]</p>
  • Reply 2 of 61

    This is not the case. This is what everyone thinks.

    There are many rich people and the immerging middle class unlike what you said is willing to pay good money to buy branded PCs. How else can you explain the proliferation of Nike, Mercedes Benz and certain other brands in China? They are in no way cheap even in China and yet people are just eating them up.

    It is true that macs are a little more expensive than the unbranded pcs, but notebooks and when compared to branded computers in China, the price difference is marginal.

    The main problem is not the price.

    The main problems are:

    1. Software-people are used to buying cheap pirated software down the street.

    2. Ignorance about Macs-if only there were more ads to show the quality of the product and how easy to use it is. It is the misconceptions that are making apple go the wrong direction.

    3. Service-Some of those people in the Apple Centres know so little. They just dissasemble and hope to get the things right

    4. Marketing-I had a talk with the marketing people and they have no clue as to how to do this. They should focus on portables and iPods.
  • Reply 3 of 61

    Mac sales are getting quite big not but the problem is that a big percentage of the buyers just return the products because they find out only when they buy the computer that they can't run the same software on it. They think that there are no software for Mac.

    Since they've got this money back guarantee thing in China, Apple is suffering in this way.

    Parents are willing to spend 3/4 of their montly salary just for their child.

    It is not about whether they can afford it, just to make them see the real benefits.

    Don't think China is only composed of famished people. Many are, but certainly not all. And the middle class with money is emmerging.
  • Reply 4 of 61
    While China does have a growing western style urban elite, it is still very small. And while they can afford the imported cars and electronics, it is still only several million people.

    But below them, there are half a billion people for who consumer electronics are comming within reach. They aren't going to spend their entire household income buying an iMac.

    And even when your talking about the rich, it is difficult to convince them to pay multipuls more for something they don't see them as being oh better.

    15 years ago Apple was doing very well in Asia, today outside the clique in Japan they are next to dead. John Sculley comming off his experiance at Pepsi understood what you had to do to sell in emerging markets. Apples current leadership doesn't care what is happening outside the silicon set in California.
  • Reply 5 of 61
    Yes, but China is developing at a phenomenal speed.

    So even if sales won't be great at this time, don't you think that Apple should start now so that it will be easier in the future when the people actually do have that much money?

    Why act later when everyone's already got a computer?

    Now's the time. At least let people know that Apple is a high quality product and a strong brand. That it isn't just for the pros or hard to use!

    When China's really ready, think what a huge market it is!
  • Reply 6 of 61
    stunnedstunned Posts: 1,096member
    A Mac World in China would definately ignite strong interests. Coupled with aggresive advertsing and cheaper prices, Apple can can benefit from China's rapid growth.
  • Reply 7 of 61

    I completely agree.

    Finally, someone who sees my point.



    Listen to Stunned as he knows more about the matter than you do. After all, he is based in Singapore.
  • Reply 8 of 61
    No I would say he is clueless as you are.

    I would love to hear your stratagy for getting people to spend their entire annual household income on a Mac when they can buy a PC for very little.

    I suspect you have never been out of the polished business areas of China the government shows the world.

    The Chinese urban elite is VERY small, a fraction of a percentage point, and even Apple is going to have trouble with them when you are charging far more for the same computer in China than they are charging in the US.

    Until Apple addresses the issues of the localized market they will acomplish absolutly dick
  • Reply 9 of 61
    stunnedstunned Posts: 1,096member
    Stag, U have too deeped rooted misconceptions about China. U should take a tour of beijing, Tianjin or Shanghai one of these days.

    China has 1/6 of the world's population. Even if the urban elite is very small, it is still in tens of millions. U cannot ignore this market. And in 5-10 years time, this figure is set to increased 5 fold!! Many of these potential buyers dun even know what a Mac is. They need to be educated. Even if Apple fails in their attempt, they should at least try. This market is too big to ignore. Look at Ferrari and Porsche - They are also entering the Chinese market

    In my opinion, Apple should start to penetrate the education market in China. It has huge potential as Chinese give alot of attention to education, and OS X has an advantage of supporting the chinese language.

    Even if Apple grabs only 5% of the market share, this represents a sizable income and bodes well for its future
  • Reply 10 of 61
    China is not a giant Singapore. And no offence but most of those I have encountered in Singapore are as disconnected from what is going on in the rest of Asia as is a Bostonian to what is going on in rural Mississippi.

    That elite is just a few million people at the moment and to get that 5% of the Chinese market they will have to adapt to the Chinese market. That means one, bringing Chinese mac prices into line with prices in the rest of the world. And bringing those prices down further to make them affordable to the working class.

    The working class Chinese are not going to sink 100% of their annual income into an iMac. It isn't going to happen.

    [ 02-01-2003: Message edited by: Stagflation Steve ]</p>
  • Reply 11 of 61
    Answer me this: How many people in China have any plans to buy a computer in the very near future? I don't think the number is large when given as a percentage, but remember that 1% of China is something like 15 million people. If 1% of China is in the market for luxury goods, which I believe is the case, then Apple would be doing itself a favor by marketing in China, even without any sort of price discrimination.

    [ 02-01-2003: Message edited by: Splinemodel ]</p>
  • Reply 12 of 61
    Lots of people in China are buying computers, although the Urban elite is very small, there are still lots of Chinese who can afford consumer electronics.

    In China you can get a basic PC with a Celeron processor for CNY 2,500 that is about $300 give or take, I don't feel like doing the math

    You can get a fully loaded monster Pentium 4 for about CNY 4000 which is about $475

    An iMac G3 comes in at CNY 18,000 which is about $1950 or more than double the American retail price

    See the problem here?

    If your annual income is CNY 20,000 CNY are you going to almost all of it on a G3 iMac?

    Even the wealthy Chinese aren't going to spend that kind of money on a Mac when it obviously isn't worth it.
  • Reply 13 of 61

    Even the wealthy Chinese aren't going to spend that kind of money on a Mac when it obviously isn't worth it.


    Then explain why overpriced european fashion goods sell so well there. . . And I'm not talking about pirated copies.
  • Reply 14 of 61
    Stag, I think too that you're suffering from prejudice.

    I have some questions for you;

    1. Have you ever been to China?

    2. Do you know anything about Apple China in Beijing or Founder Electronics: The largest representative of Apple in China?

    3. Do you know the way of thought of the Chinese?


    Education is not the only way to go. When I was at founder, we did some work on education.

    The 19th middle school in Beijing has encouraged their students to purchase iBooks and 89 iBooks have been bought by the students themselves with their own money.

    I also worked as a teacher at Yuncol Summer camp where Founder provided iMacs for teaching iMovie. I know the mentality of these kids. They give a phone call to their parents and they bring the money.

    As long as the kids and adults know the benefits and how great apple is, apple will have no trouble.

    I see no ads in China. No signs of the switch campaign either.

    This is sad.

    However, Eucation is not the only way to go yousee.

    Teachers are bad.

    No one knows anything about apple these days and support does negative help.

    Apple should train a bunch of peoople who are actually really qualified
  • Reply 15 of 61
    You should go see the attitude of the people at Apple.

    A bunch of arrogant bigshots who know hardly anything about apple.

    The reason they got their places was because they have experience with Dell or Compaq or HP.

    This isn't the way of apple and they don't have the foggiest idea as to what to do next.
  • Reply 16 of 61
    At founder I also worked on Software localisation

    We tried to get Real Basic localised but the deal didn't work. We were really close though.

    No software company wants to get their software localised as they think it will just be pirated.


    How do you think Microsoft got so popular? Piracy will work on our side!

    As I was saying,

    Education is not the only way.

    We must also focus on consumer stuff.

    Lots of people buy iBooks now but they are so ignorant about apple that they find out they can't install software (windows software) as I already mentioned.

    Dealers are too ignorant too.

    I also worked at an Apple Center.

    The attitude of the dealers is "Take it or leave it. I will not spend my time to explian you what apple is all about (neither do I know) so If you want to buy it, buy it, I don't give if you don't"

    iPod is a place where apple can really compete.

    Advertise Advertise ADVERTISE!

    They are so blind!!!!

    I have much more to say, but I've got to do some homework.

    By the way, just got accepted to Purdue (Not that anyone cares or anything...)
  • Reply 17 of 61
    [quote]Originally posted by stunned:


    China has 1/6 of the world's population. Even if the urban elite is very small, it is still in tens of millions. U cannot ignore this market. And in 5-10 years time, this figure is set to increased 5 fold!!</strong><hr></blockquote>

    The last line is rooted as much in reality as "The economy has entered a new era where the cyclic natur has been replaced by one without crisis" had four years ago.
  • Reply 18 of 61
    congratulations on your acceptance to purdue!!

    I will withold my opinion from the matter in discussion until I have built one
  • Reply 19 of 61
    Just in case you were wondering,

    Apple market share of total pcs in China is;

    A pathetic 0.2% <img src="graemlins/bugeye.gif" border="0" alt="[Skeptical]" />

    [ 02-02-2003: Message edited by: stevegongrui ]</p>
  • Reply 20 of 61
    [quote]Originally posted by pumpkin:


    I will withold my opinion from the matter in discussion until I have built one </strong><hr></blockquote>

    Nice to know another is interested.

    Cumon! is the number of people interested in this thread only 4?

    This important!

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