Challenges ahead of Apple as China becomes world’s biggest smartphone market – Part 3

Monday, March 12th, 2012 5:41:15 by

As for the demand in China, the company was overwhelmed by crowd that gathered at Apple stores upon the release of iPhone 4S. Apple CEO Tim Cook expressed his sentiments in a January statement. “We thought we were betting bold,” Cook said. “We didn’t bet high enough.”

The reason why Apple is not working with China Mobile is the incompatible 3G technology in the carrier’s network and the receiver/transmitter in the iPhone. China Mobile works on TD-SCDMA technology. Wang Jianzhou, chairman of the Chinese company however, assured that once China Mobile starts the service on TD-LTE, it might have a chance to include iPhone to its portfolio.

Even though China Mobile does not support Apple products, around 15 million users own iPhones, using the 2G network or connecting through a WiFi hotspot.

Moreover, Apple aggravated the already aching market share by shutting down all its corporate sales centres in China. On the first of its new iPhone 4S, one of the centre in Beijing’s Sanlitun district failed to open for business, intensifying the aggression in the crowd that gathered up and waited the whole night up lay their hands on the new smartphone.

In a response, the crowd pelted the shop with eggs, forcing police to disperse them and vacate the area. Apple said it would suspend sales of iPhones at all its stores and to date, the brick and mortar centres are closed for business.

The company however, continues to sell its products through online shop but the access to centres has taxed their sales figures.

The iPhone 4S has been “an incredible hit” with customers around the world, Apple spokeswoman Carolyn Wu said in an e-mail. Apple “can’t wait to get it into the hands of even more customers in China,” Wu said. However, she declined to comment on when traditional sales will commence its operations.

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