Apple needs to reduce prices to compete with Chinese rivals iPhone

“Forbes” may underestimate the buying power of Chinese consumers, and Apple’s fanatical pursuit of Lead: “Forbes” magazine analysis of articles published online Thursday, said that although Apple is actively used litigation against Samsung, HTC and other weapons to protect its U.S. rival interests, but to restrict the development of European and Australian markets. For the huge potential Chinese market, they may need to lower iPhone prices to compete with rivals.

The following is the text of the article:

Apple sued Samsung has been active in (microblogging), HTC (microblogging) and other competitors to protect their markets in the U.S. and other interests, but so far, Apple limited themselves in Europe, Australia and other developed countries.

But the face of huge and growing potential of the Chinese smartphone market, Apple is now focused on increasing market penetration. Apple may also face a threat that is, including Lenovo, ZTE, TCL (microblogging), Cool and Konka mobile phone brands in China, including the formation of alliances to counter external threats, strengthen their patent portfolio.

The next intelligent machine center – China

According to market research firm Strategy Analytics released the third quarter of last year’s figures to shipments, China has surpassed the U.S. as the world’s largest smartphone market, mainly due to China’s huge population.

But Chinese smart phone penetration rate in 2010 is only about 15%, with the development of China’s national strength, the purchasing power of ordinary Chinese people are upgrading, the Chinese market demand for intelligent machines will grow substantially. Even Apple CEO Tim Cook ‧ (Tim Cook) has recognized China’s market there is great potential in his 2011 Apple’s fiscal fourth quarter earnings conference that China is now the fastest growing business areas, Apple, Apple is also possible effort to promote the brand in China.

China Unicom’s iPhone has passed (microblogging) in the Chinese market, China Mobile (microblogging) and China Telecom (microblogging) is also planning to operate iPhone.

However, the Chinese telecommunications industry seems to prefer low-cost intelligent machine operators, and not from Apple, Samsung and Nokia (microblogging) and high intelligent machine. According to the latest report, China’s wireless operators have begun to actively promote the price of 1000 yuan of intelligent machines, these intelligent machines by Huawei (microblogging), ZTE, Lenovo, Cool, TCL, and Sanda and other Chinese brands.

Since most users in China is still unable to buy expensive smart phone, the strategy for the Chinese mobile phone manufacturers to bring a huge profit.

IPhone price reduction

It is interesting that Apple will lower the iPhone price in China market it? Apple may eventually will reduce the price of the iPhone in China, but to rely on their long-term strategy that is dependent on a patent infringement lawsuit to temporarily prevent the development of competitors.

Apple has been launched in many countries a lawsuit against Samsung, and specifically chosen in Germany, France, Italy and other European countries made strong action against Samsung, Apple’s share of these areas happen to be the erosion of the Android market vendors. On the other hand, iPhone outstanding performance in the UK, Apple is currently very little competition in the state proceedings.

So far, Apple did not sue the manufacturer in China, but Microsoft (microblogging), Nokia has filed a lawsuit. Microsoft has asked the company to pay licensing fees Huawei, Nokia are some mobile phone manufacturers for patent litigation.

As China is recognized as the largest potential growth market, so Apple is expected to be added soon after the patent litigation. However, Chinese manufacturers has now formed an alliance, which will make Apple the manufacturer of any patent infringement litigation resulting in greater difficulties.