Since China is one of the primary target markets of Apple, the delay of the iPhone 6 launch due to government regulatory problems not only cuts Apple’s revenue but it is also detrimental for gaining new followers. According to TianYe’s blog about the current situation in the Chinese Apple market, it is essential for Apple to always keep an eye on government policies of the target market countries. Personally I concur with this statement as Apple is drastically losing its market shares in mainland China from 13.2 percent to 5.6 percent for Apple’s iOS accounts.

http://www.foreignpolicy.com/files/imagecache/860x/images/iphone_small.jpg

In addition, the price of the iPhone 6 in the black market has dramatically dropped after the first week of selling. Due to the new iPhone’s unstable system, easily bendable frame and its incompatibility with China’s 4G network, the selling price dropped from ~$2,700 US dollars to ~6,500 rmb (approximately $1,060 US dollars). The unexpected low demand results in a supply chain surplus, thus most iPhone dealers who smuggle iPhone 6s from other countries to China now begin to lose money.

The chain reaction of losing money couldn’t have been an outcome if Apple overcomes the issues with the Chinese government when launching the new iPhone. The best way for Apple to avoid similar loss is to reinforce the customer relationship as well as building strong partnership with Chinese cellphone carriers as TianYe stated. Moreover, Apple should be cautious about their value prepositions, in this case the frame of the new iPhone, to prevent external threats such as “bendable phone” rumors.

Work Sited:

Campbell, Mikey. “Apple to Reportedly Miss Internal Launch Target for Chinese IPhone 6.” Appleinsider. 2014, Quiller Media, Inc., 10 Sept. 2014. Web. 04 Oct. 2014. <http://appleinsider.com/articles/14/09/10/apple-to-reportedly-delay-chinese-iphone-6-launch>.

Guo, TianYe. “SWOT- “BIGGER AND BETTER”.” Tianye Guos Blog. 2014Tianye Guo’s Blog, 20 Sept. 2014. Web. 04 Oct. 2014. <https://blogs.ubc.ca/tianyeguo/2014/09/20/swot-bigger-and-better-is-still-waiting-on-bench/>.

Villapaz, Luke. “Apple Delays IPhone 6 Launch In China, Its Most Challenging Market.” International Business Times. 2014 IBT Media Inc., 10 Sept. 2014. Web. 04 Oct. 2014. <http://www.ibtimes.com/apple-delays-iphone-6-launch-china-its-most-challenging-market-1684266>.

Reisinger, Don. “Prices Drop for IPhone 6 Devices Smuggled into China — Report – CNET.” CNET. CBS Interactive Inc., 29 Sept. 2014. Web. 04 Oct. 2014. <http://www.cnet.com/news/smuggled-iphone-6-units-see-prices-slashed-in-china-report-says/>.