in the past 5 years is based how well it devised and executed its strategy to
explore different markets and how well it partnered with other businesses to
Apple with its
strategy of exploring under-developed markets, cracked the Chinese market Where
Google and Facebook were sent into exile and Uber conceded defeat to a Chinese
rival. Apple posted a smaller-than-expected 6% gain in 2014’s 3rd quarterly
revenue due to sluggish growth in saturated markets in Europe and North America
but revenue in China surged 28% despite Apple’s premium pricing. Apple has seen
a huge increase in sales despite selling a premium product into a less
developed market (Edward, 2014). In January 2015 Apple offered a premium
product to the growing numbers of Chinese middle-class consumers that want to
buy luxury goods. They signed on with China Mobile and thus took the
opportunity to bring the brand to the mainstream Chinese. They introduced
iPhone 6 which appealed to the Chinese audience with its big size. Apple as a
status symbol became the desirable brand (Lydia, 2016).
But Apple has
reached its turning point. Research published in February 2017 shows that 2016
was the first year in which the iPhone dropped in the rankings of smartphone
sales in China, falling from 15 percent of market share to 11 and selling fewer
units even as demand for smartphones grew (Jeremy, 2017). Greater China
revenues for Apple fell 10 percent year-on-year in its fiscal third quarter of
2017 to just over $8 billion. It marks yet another quarter of decline for the
U.S. tech giant (Arjun, 2017).
in China have pushed the company to adjust its policies in the market. Apple
tried to please Chinese consumers by launching its first massive Apple Pay
promotion in July 18 that offered discounts up to 50% on different items in
China. Another of Apple’s initiatives involves a USD 1 billion investment in
Southwest Guizhou province. On July 2017, the company announced that it would
work with the Guizhou provincial government to build its first iCloud data
center in China (All Tech Asia, 2017). Apple is now allowing Chinese customers
to use popular local mobile-payment system WeChat Pay for purchases in its App
Store, underscoring the expanding reach of the service owned by technology
titan Tencent Holdings Ltd. Apple CEO Tim Cook said that Tencent is “one
of our biggest and best developers” and that Apple looked forward to
working with the company “even more” (Alyssa, 2017).
Joyce, et al.’s 4+2 model defined in our text, we can deduce that Apple Inc.
recovery as a market leader again is quite plausible it made
Industry-Transforming Innovations in the Chinese market and partnered with
Companies and Institutions to seek future long-term growth in the market.