To achieve further success in China Apple needs China Mobile and cheaper products.
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Several times, deals were nearly announced with Apple by China Mobile, but seemingly at the last moment, the deal fell through and Apple walked away.
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They analyze the development of Google or Apple in China very differently from how I do.
But the more likely explanation for the squeeze on Apple is China's obsession with censorship.
The only reason for the recent attach on Apple in China is Samsung.
Others observe that local services have better maps than Apple in China, but that is not the key point.
However, now it seems that we could see the stalemate between Apple and China Mobile extending longer than many anticipated.
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Xiaomi would never come out and say it, but a setback for Apple in China is good news for other smartphone makers.
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Apple expects China to overtake the US as its biggest sales market, the company's chief executive has told China's state news agency.
Once signed, this will be a huge boost to Apple as China Mobile is by far the biggest mobile operator with around 650 million subscribers.
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Translated into the human speak, it means that Apple and China mobile are now engaged in negotiations about order commitments, price, subsidy amounts and revenue sharing.
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With Apple (AAPL) trading at 22% of its true value, what happens with Apple in China could help determine whether investors ever get to bite into the other 78%.
In short, this recent attack on Apple in China is never about protecting Chinese national interests such as helping domestic phone makers or protection of the market, none about consumer rights.
Talks between Apple and China Mobile have been going on for years and are stuck on revenue sharing terms, analysts said, so it is tough to say if this meeting would break new ground.
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But it seems Apple might have to foot a part of the subsidy bill and take a hit on margins for such a contract to happen. (see Apple Faces China Mobile-Sized Stumbling Block Limiting China Upside Potential) Penetrating China could mean long-term margin pressures as well as the company seeks to compete against the rapidly growing Android market, mitigated to an extent by the carrier subsidies.
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Many attribute the opening of counterfeit Apple stores in China due to unmet demand for Apple products in the region.
Why was Apple successful in China, whereas its competitors, such as Google have failed?
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At one prominent Apple Store in China, only one person waited outside before the store opened.
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Earlier this year an American tourist blogged about a fake Apple store in China's southern Yunnan province.
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What Google probably did not realize, and Apple underestimated in China, is how relentless the authorities can be.
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"It won't affect Apple's China strategies", said Qu Xiaodong, a senior IT expert.
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And yes it is partly because Apple assembles in China, because Foxconn marshalls 1.3 million people to build electronics.
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Apple has also had to contend with fake Apple stores in China.
Despite the nuisances, Apple clearly views China as more positive than negative.
Last week when the 4S was supposed to be available in Apple stores in China, unruly crowds forced the company to delay its launch.
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And also there has been more and more unpleasant news about Apple suppliers in China, opening another potential front of backlash against the company.
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