Apple and the Chinese Market

As we all know, there has always been a huge following of apple devices in China like the iphone and ipad. With the current introduction of the ipad 2, the 16GB version can be resold in china for around 6000 RMB when it is only being sold in the States for a mere 2400 RMB (rounded after exchange rates applied).This lead to a high rate of illegal transfers of ipads and iphones by travelers when they were first introduced.

From these occurrences, we can see that the Chinese population has a high interest in American and global trends. Apple and other high end global brands should take advantage of this market, as it does promise a large amount of turnover, being aware that there might be lot of big local firms arising. It has always been said in china that people think that western culture is of a higher class and higher quality. Adding to the fact that international firms can control the amount supplied into China in order to increase the demand of the product within the country.

One fact that firms should be very careful with is the problem of not being to price discriminate due to travelers from other countries constantly smuggling that product to resell. One method the firms can use for the electronic industry is the lock programs that apple iphones were using, not being able to use that product outside of the region that you have purchased it in.

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