After reading about Apple’s distribution strategy in China from Randy’s blog and looking at the incredible demand for Apple products in Asia, it’s surprising to me that the company had not already widened their distribution channels in China. I definitely agree with Randy that Apple needs to gain market share in the Chinese market by partnering with China Mobile Ltd. (the largest carrier in China). In fact, Apple now actually has made plans to expand into China by offering the iPhone China Mobile Ltd’s network, which in my opinion, is definitely a good move for Apple.

With this, I’d like to do a simple breakdown of Apple’s channel selection and design for the iPhone in China.
1. Customer/Market factors: I think the most important factor here is economy. Considering that China’s economy could soon surpass the United State’s, there is a huge expansion opportunity available for Apple to capitalize upon.
2. Product factors: I believe that Apple has the chance to use exclusive distribution in the Chinese market because of the high demand for the iPhone and size of China Mobile Ltd. If Apple can successfully partner with China Mobile Ltd., it could not only enhance the company’s brand image, but would also be able to justify a higher markup on the phone.
3. Organizational factors: In terms of size and resources, Apple currently has more than enough resources to take on the market in China and I think that this expansion would definitely prove to be a worthy one as well.
4. Competitive factors: Although Samsung has had the upper hand in the Chinese market by partnering with all carriers in the Chinese telecommunications market, Apple’s single partnership with China Mobile Ltd. could build up the exclusivity of the Apple brand and increase desire among customers.
After consulting all these factors, I think it would be most beneficial for Apple to select an indirect distribution channel using China Mobile Ltd. as an exclusive retailer in China. Since Apple already has plans to develop this partnership, it’ll be interesting to see how everything plays out for the company in the coming year.
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