As Apple Inc. started selling the iPhone 4 in China through partner China Unicom Ltd, while it is enjoying tremendous sales growth, it is apparently facing several issues. There is growing competition from rival smartphones that made by local vendors such as Lenovo Group Ltd. and  Huawei Technologies Co. The intense competition is consider a threat for iPhone because its sales number is below expectation. One of the points of difference for iPhone is that it is expensive price compared to that of other devices in Chinese market. One of it points of parity is that iPhone shares similar features and performance many smartphones offer. Another threat iPhone encountered before its release in China was that Apple did not own an “iPhone” trademark in China that covers mobile phones. There was necessity for iPhone to make a deal with China’s Hanwang Technology owned the trademark for “i-phone” in the country. In conclusion, for a business to come into a new market, it has to grasp its opportunities – in this case the massive Chinese market, to improve its product to stay competitive in the market and think of strategies to tackle the threats.