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INTERNATIONAL MARKETING PLAN

iPhone: Entering the Chinese Market

By Mark Regan
Table of Contents

1. Executive Summary....................................................................................................1

2. Introduction.................................................................................................................1

3. Situation Analysis .......................................................................................................2

3.1 Stakeholders ..................................................................................................2

3.2 Environment Analysis .....................................................................................2

3.2.1 Political & Legal Environment ...............................................................2

3.2.2 Economic Environment.........................................................................3

3.2.3 Social & Cultural Factors ......................................................................3

3.2.4 Technical Environment..........................................................................3

3.3 SWOT Analysis ...............................................................................................3

3.3.1 Strengths ..............................................................................................3

3.3.1.1 Technical Innovation and 100% Control ......................................3

3.3.1.2 Software Development Experience ............................................4

3.3.1.3 High switching costs ...................................................................4

3.3.1.4 Strong Relationships with 3rd Party Manufactures .....................4

3.3.1.5 Upgradability ...............................................................................5

3.3.2 Weakness ............................................................................................5

3.3.2.1 Apple’s Weak Brand in China .....................................................5

3.3.3 Opportunities ........................................................................................5

3.3.3.1 iPhone as a Gaming Platform .....................................................5

3.3.3.2 In App Purchasing .......................................................................6

3.3.3.3 Multi Touch Trackpad as an Input Method for Pin-Ying ..............6

3.3.3.4 iPhone as a Hub .........................................................................6

i
3.3.4 Threats .................................................................................................6

3.3.4.1 Competition from Microsoft, RIM, Palm, Nokia & Google ...........6

3.3.4.2 iPhone Clones & Copyright in China ..........................................6

3.4 Competitor Analysis ........................................................................................7

4. Market Segmentation .................................................................................................7

5. Selected Marketing Strategy ......................................................................................8

5.1 Product ...........................................................................................................9

5.2 Price ...............................................................................................................9

5.3 Distribution (Place) .......................................................................................10

5.4 Promotion .....................................................................................................10

6. Conclusion ................................................................................................................10

7. Appendix ...................................................................................................................12

Fig 3: China Monthly Growth by Operator March 2007 - March 2008 ................12

Fig 4: China Population Density..........................................................................12

Fig 5: Population of China ..................................................................................13

Fig 6: Population Projection ................................................................................13

Fig 7: Age Distribution ........................................................................................14

Fig 8: Population Pyramid 2006 .........................................................................14

Fig 9: Sex Distribution 2009 ...............................................................................15

Fig 10: Educational attainment ...........................................................................15

Fig 11: Total Worldwide iPhone Sales (Millions) .................................................16

Fig 12: iPod Unit Sales per Quarter ....................................................................16

Fig 13: iPhone Worldwide Availability .................................................................17

8. Bibliography ..............................................................................................................18

8.1 Publications ..................................................................................................18

8.2 Webpages ....................................................................................................18

ii

1. Executive Summary
Apple’s ability to enter the Chinese mobile market are of crucial importance to the
companies future success. Traditionally, Apple has not been very successful in this market
due to social, economic and cultural differences. The Chinese government are known for
their authoritarian control over both consumers and businesses; a position that Apple are
not comfortable with.

The following report outlines the core strengths and weaknesses of Apple when entering
the Chinese market whilst paying attention to their competitors in an environment where
intellectual property is not respected. Finally, a marketing plan is proposed that will
successfully position Apple in the market.

2. Introduction
Apple Inc. designs, manufactures, and markets personal computers, portable digital music
players, and mobile communication devices and sells a variety of related software,
services, peripherals, and networking solutions.

Apple’s most successful product to date has been the iPod which has sold over 163 million
units to date. As the market for digital music players has become saturated, Apple have
developed a break through smart phone called the iPhone. Although many doubted
Apple’s ability to gain market share in an increasingly competitive and complex market,
they have succeeded in selling over 21.17 million units in only 2 years. In comparison, it
took Apple 3.75 years to sell that many iPods (See Fig 9).

Relatively speaking, the iPhone is far more important to Apple than the iPod. The iPhone‘s
addressable market is considerably larger than that of the iPod. Although traditional mobile
phone sales still dominate the market, a clear shift is under way. Mobile phone sales for
the first quarter of 2009 totalled 269.1 million, a drop of 9.4% over the same period last
year. Smart phone sales for the first quarter of 2009 were 36.4 million, representing a
12.7% increase over the first quarter of 20081.

The iPhone is available in 88 different countries throughout the world, representing an


addressable market of 760 million users 2. However, Apple have been unsuccessful in
bringing the iPhone to China. Negotiations regarding the matter have broken down with
both China Mobile and China Unicom; the only two mobile service providers in the country.
As of February 2009, China Mobile and China Unicom have a collective subscription base
of 565 million users; equalling 74% of the iPhone’s current addressable market.

1 CNet, Apple doubles its iPhone market share, 16 June 2009, http://news.cnet.com/8301-13579_3-10245339-37.html
2AppleInsider, Apple added to short-term Alpha List at Piper Jaffray, 17 June 2009,
http://www.appleinsider.com/print/08/09/02/apple_added_to_short_term_alpha_list_at_piper_jaffray.html
1

3. Situation Analysis
3.1 Stakeholders
Apple’s strategy of adopting exclusive partners has enabled them to aggressively
negotiate with carriers in each country. Traditionally, the mobile carriers hold all the cards
and the mobile manufacturers are at their mercy. This could not be more true in China
where there exist only two mobile carriers; China Mobile & China Unicom.

China Mobile are benefiting from a near monopoly in the mobile market with a subscription
base of 450 million and revenues of $48.79 billion for fiscal year ending December 2007.

An alternative partner for Apple would be China Unicom, which has a smaller subscription
base of 130 million. However, there are several reasons why this would be an unwise
decision. China Unicom have been struggling against China Mobile in recent years. Fig 3:
China Monthly Growth by Operator (Appendix) shows the divergence in performance
between China Mobile and China Unicom. In response to decreasing revenues, China
Unicom have adopted an alternative strategy of becoming a "world-leading broadband
communications and information service provider”3 . This change in strategy represents a
significant risk for Apple in choosing China Unicom as their exclusive partner. There also
exist technical challenges in choosing China Unicom as they use a wireless technology
known as CDMA. The iPhone uses GSM technology hence partnering with China Unicom
would force Apple to build a second versions of the iPhone; a decision that would be
misaligned to it’s strategy of hardware & software standardisation.

Hence, China Mobile would be the most appropriate exclusive partner for Apple. There are
many synergies between the two companies that would be mutually beneficial. Apple have
designed the worlds most popular smart phone whilst China Mobile have the worlds
largest subscription base and strengthening control over the worlds largest mobile market;
China.

3.2 Environment Analysis


The Chinese mobile market has the largest number of mobile subscription users in the
world and is growing at over 20% per annum. Considering that the population of China is
1.3 billion and mobile penetration is only 35%, this represents a significant growth
opportunity for Apple4.

3.2.1 Political & Legal Environment


The Chinese government retain tight control over the mobile industry in China. The two
providers of mobile services - China Mobile & China Unicom - are state owned and highly

3China Unicom, China Unicom (Hong Kong) Limited Announces 2008 Annual Results, 16 June 2009,
http://www.chinaunicom.com.hk/en/press/press_release/news.html?id=437
4International Telecommunications Union, Market Information and Statistics (STAT), 16 June 2009,
http://www.itu.int/ITU-D/ict/statistics/ict/index.html
2

influenced by government policy. Apple must be cautions in entering this market as the
Chinese government exercise authoritarian control over both Chinese citizens and
companies.

For instance, it is likely that Apple will have to disable the WiFi functionality on the iPhone
in order to comply with the Communist Party's strict Internet control and censorship rules 5.

3.2.2 Economic Environment


The economy of the People's Republic of China is the second largest in the world after
that of the United States with a GDP of $7.8 trillion (2008) when measured on a
purchasing power parity (PPP) basis. China has been the fastest-growing major nation for
the past quarter of a century with an average annual GDP growth rate above 10% 6.

3.2.3 Social & Cultural Factors


Gross and disposable income has increased rapidly over the past 10 years, and is
expected to grow until 2015. Statistical figures indicate that the Engel coefficient7 has been
decreasing since the early 1980’s. The figures imply that both urban and rural population
has a level of welfare which allows them to spend a significant share of their income on
non basic survival requirements (Edfalk, 2006).

3.2.4 Technical Environment


China Mobile alone has a population coverage rate of 98% on it’s 2G network. However,
China Mobile do not yet have a functioning 3G network in operation. For best results, the
iPhone should be used on a 3G network. Internet speeds on a 2G network are slow and
result in reduced customer satisfaction. China Mobile intend on having 70% 3G coverage
by the end of 2009 8.

3.3 SWOT Analysis


3.3.1 Strengths
3.3.1.1 Technical Innovation and 100% Control
Apple are renowned for their attention to detail and their ability to innovate at the cutting
edge of technology. Apple’s tight control over every aspect of the iPhone development
gives them a distinct advantage over their competitors. The mobile market is a highly
dynamic market that changes at a rapid pace. Apple’s tight control over both software and
hardware design enables them to rapidly innovate and create seamlessly integrated
products.

5Datamation, Why Apple and China are simply incompatible, 16 June 2009,
http://itmanagement.earthweb.com/columns/article.php/3760826/Why+Apple+and+China+are+Simply+Incompatible.htm
6USA Today, Chinese economy slows to still sizzling 11.5% growth, 16 June 2009
http://www.usatoday.com/money/world/2007-10-25-china-gdp_N.htm
7 The Engel coefficient indicates the average rate of income committed to basic survival
8 China Mobile Ltd, Business Review, 16 June 2009, http://www.chinamobileltd.com/op.php?menu=3
3

In comparison, Google and Microsoft have adopted the strategy of developing software for
3rd party manufacturers such as Samsung & LG. The result is that Microsoft and Google
are slow to develop breakthrough mobile technologies as they have to focus on integrating
with multiple types of handsets. These handsets all sport different types of hardware that
needs to be considered when developing applications; a situation that Apple does not
have to consider.

3.3.1.2 Software Development Experience


Perhaps one of Apple’s most significant strengths is their experience in software
development. Since 1984, Apple have pioneered some of the most advanced technologies
in modern computing. As the iPhone is essentially a portable computer, Apple’s deep
industry experience in software development enabled them to slingshot past competitors in
a highly competitive market.

Apple realised that one of the main drivers of sales would be the variety of applications
available for the iPhone. Apple used their software development experience to develop a
powerful Software Development Kit (SDK) that enabled software developers around the
world to create native applications for the iPhone.

The App store has been a phenomenal success, with over 50,000 application submitted
and over 1 Billion downloads in just 9 months. The CEO of Tapulous (one of the largest
iPhone developers) said that “...right now I don't see any reason to move beyond
developing for the App Store. In fact, I see us increasingly putting all our eggs in the App
Store basket.”9

A race has begun amongst Nokia, Microsoft, RIM, Palm and Apple, to capture developer
resources and enable them to create powerful engaging application for their devices.
Apple have managed to gain significant advantage over it’s competitors in a race that may
define who wins the battle of the smart phone market.

3.3.1.3 High switching costs


iTunes has become the de-facto music management application for the PC & Mac. As
iTunes does not integrate with non-Apple products, there are significant switching costs
associated with buying a non-Apple phone and transferring your music onto it.

3.3.1.4 Strong Relationships with 3rd Party Manufactures


Apple uses 3rd party manufacturers to create the iPhone. Apple has developed strong
relationships with companies such as Foxconn over the years. As a specialist
manufacturer of high quality electronic devices, Apple’s relationship with Foxconn builds
on their list of strengths.

9Techcrunch, Apple’s App Store: 1 Billion Served, 15 June 2009,


http://www.techcrunch.com/2009/04/23/apples-app-store-1-billion-served/
4

3.3.1.5 Upgradability
Unlike traditional phones who’s software cannot be upgraded, the iPhone’s software can
be updated to the latest version months after it’s purchase. In addition to this, the user can
add apps to their iPhone through the App Store. Hence, the iPhone actually becomes
more valuable to the user as it gets older. This is in stark contrast to traditional phones that
remain the same throughout their life time.

3.3.2 Weakness
3.3.2.1 Apple’s Weak Brand in China
Apple have benefited from their world renowned brand when launching the iPhone in the
USA and Europe. However, Apple does not have the same brand strength in China. The
iPod has only an 8% market share in China compared to a 71% market share the USA.
Additionally, the Mac computer has less than a 1% market share in China compared to a
13.8% market share in the USA10 . Apple have relied on their loyal user base when
launching the iPhone in the USA and Europe. This strategy is not going to be possible in
China. Hence, Apple must ensure that the iPhone appeals to users beyond the “Apple
fanatics”.

3.3.3 Opportunities
3.3.3.1 iPhone as a Gaming Platform
According to empirical research by O’Reilly Radar, 22.5% of apps in the App Store are
games. This is not unsurprising as the iPhone has all the ingredients of being an incredible
gaming device. It’s touch screen controls, digital compass, GPS & accelerometer enable
3rd party developers to create highly immersive games that have not been seen before in
the handheld gaming industry. Hence, Apple is not only positioning itself to capture a
significant portion of the mobile phone market, but to become a significant player in the
handheld gaming industry too.

The handheld gaming market is an intensely competitive $7.2 billion industry11 that is
dominated by Sony (PSP) & Nintendo (DS). Apple has the potential of winning a large
portion of this market due to the iPhone’s unique features and the App Store. The App
Store has enabled independent developers to easily create games with limited budgets
whilst reaching millions of customers around the world. By empowering the developer
community with the iPhone SDK & App Store, Apple have presented Sony and Nintendo
with a very serious threat; an array of high quality low priced games.

10Apple a Day, Soaring Mac market share means more headaches for Microsoft, 16 June,
http://weblogs.baltimoresun.com/business/appleaday/blog/2008/05/soaring_mac_market_share_means.html
11 MindBranch, Electronic Games and Gaming, 15 June 2009,
http://www.mindbranch.com/Electronic-Games-Gaming-R2-1179/
5

3.3.3.2 In App Purchasing


The latest release of the iPhone enables developers to charge it’s users for digital content
within the app itself. This may not seem like a break through opportunity for Apple,
however it is very significant. Apple stores the credit card details of it’s customers and
charges developers 30% commission on all transactions. For example, the massively
successful game called “The Sims” enables users to purchase virtual clothes and
accessories in a virtual world on the iPhone. Although this may seem “daft”, the existence
of “In App Purchasing” will revolutionise gaming as we transition away from generic to
unique gaming experiences.

3.3.3.3 Multi Touch Trackpad as an Input Method for Pin-Ying


Chinese have long suffered from poor input methods for Pin-Ying (The character set of
Mandarin). The iPhone software keyboard is adaptable, allowing you to switch between
more than 40 international layouts. The iPhone also features sophisticated character
recognition software that lets you draw a Chinese character with your finger and tap to
choose the matching result12 .

3.3.3.4 iPhone as a Hub


Although the iPhone has only been in existence for just over 2 years, the iPhone’s core
strategy has shifted considerably in this time period. Initially, the iPhone was marketed as
a device. The Apple marketing division focused on the iPhone’s unique features such as
multi-touch. The second version of the iPhone was marketed as an application platform.
Advertising slogans such as “25,000 apps. And counting” focused on the App Store as it’s
main source of differentiation. The next wave of the iPhone will be as a digital hub. The
new iPhone software enables developers to integrate the iPhone with 3rd party devices.
For example, an iPhone accessory called DiabetesLog enables diabetics to check and
record their blood sugar levels directly on their iPhone. Enabling this level of integration
with the iPhone will open up a vast range of additional markets.

3.3.4 Threats
3.3.4.1 Competition from Microsoft, RIM, Palm, Nokia & Google
The smart phone market is growing a a rapid rate. As barriers to entry decrease, expect
new entrants to pose significant challenges to Apple. Google have adopted a game
changing strategy of developing smart phone software, and allowing smart phone
manufacturers to use it for free. Such disruptive strategies need to be carefully followed.

3.3.4.2 iPhone Clones & Copyright in China


Given that China have dubious copyright laws, Apple cannot rely on it’s intellectual
property as a source of competitive advantage. Instead, they need to develop strong brand

12 Apple, iPhone 3GS Keyboard, 16 June, http://www.apple.com/iphone/iphone-3g-s/keyboard.html


6

recognition and convince consumers that the iPhone is a far superior to the iPhone clones.
One particular clone is called the HiPhone, and is virtually indistinguishable to the iPhone.
The presence of these clones in the market are a threat to Apple on several fronts. They
reduce Apple’s revenue, put downward pressure on Apple’s pricing strategy and
significantly damage Apple’s brand reputation.

3.4 Competitor Analysis


The above chart was calculated based on current prices of phones & personal
interpretation of feature sets.

Fig 1: Competitors: Price vs Features


100 LG Prada
iPhone
Nokia N95
80 Palm Blackberry Curve 8300
Palm Trio 750
Nokia Nokia 5300
60 Palm Pre
Price

LG Prada Blackberry iPhone

40

20 Palm

Nokia
0
0 20 40 60 80 100
Features
4. Market Segmentation
The iPhone has appealed to a broad range of market segments throughout the USA and
Europe. According to market research by Solutions Research Group 13, the general trend
amongst consumers can be represented as follows:
Fig 2: Purchasing Desire by Age Fig 3: Purchasing Desire by Gender

6%

31% 31%
28%
72%

32%
15 - 24 25 - 34 35 - 49 50+ Male Female

13AppleInsider, Apple, AT&T neophytes to define iPhone audience - report, 16 June,


http://www.appleinsider.com/articles/07/06/06/apple_att_neophytes_to_define_iphone_audience_report.html
7

Based on successful targeting in international markets, the iPhone will be targeted at the
following segments:

Price
Target Corresponding Feature/ %
Consumer Need Sensiti
Segment Benefit Sales
vity

Professionals Stay in touch while Email, instant messaging &


on the go. Record phone. Replace the need of
4/10 35%
information while on laptop to check emails.
the go.

Students Perform multiple iPod, phone, video, TV


functions without shows, internet & PDA.
carrying multiple Apple branding as fashion 9/10 20%
gadgets. Style and statement.
individuality.

Corporate Input & Access to Access to corporate


Users critical data on the exchange server. In house
3/10 25%
go. applications developed for
mission critical activities.

Entrepreneurs Access to contacts, Wireless access to calendar


appointments and and address book
5/10 15%
other essential information. Access to the
information. internet for rapid research.

Medical Users Update, access and Wireless access to patient


exchange medical information. Remote
information. monitoring of patients. 6/10 5%
Calendar and Address book
information.

Weighted Average: 5/10 100%

5. Selected Marketing Strategy


Apple have historically adopted a price skimming strategy when entering new markets,
however the environment and circumstances surrounding the Chinese market are entirely
different to any previous market Apple have entered. Firstly, Apple do not have a strong
brand within China, as cheap digital music players and laptops are very popular. Secondly,
iPhone clones are gaining popularity and damaging Apple’s brand and competitive position
by placing downward pressure on their pricing strategy. Finally, smart phones are relatively

common in China and hence the “wow factor” will not be as evident amongst Chinese
consumers.

5.1 Product
I recommend that Apple make a select few changes to the iPhone. Firstly, I recommend
that they disable the WiFi antenna on the iPhone as it would be against the Internet control
and censorship rules. In a country like China, it is vital that you are not seen as a
disruptive presence.

As mobile phones are seen as a fashion item rather than a functional device, I recommend
that the iPhone be made available in a range of colours. Alternatively, Apple could enable
the backside cover of the iPhone to be replaced; a trend which is very popular amongst
the Chinese.

In an attempt to further differentiate the iPhone from it’s competitors, the iPhone software
should enable the user to input Chinese characters by drawing on the multi-touch screen.
As this process has historically been very difficult for Chinese, it should act as a useful
promotional tool.

I would recommend that all other features on the iPhone be kept the exact same. Apple
has always adopted a standardised worldwide product policy. If the Chinese iPhone were
to sport significantly improved features, it may lead to the creation of grey markets in areas
outside of China; a scenario that may upset Apple’s international partners.

5.2 Price
The existence of iPhone clones has undermined Apple’s pricing strategy. If Apple adopt a
price skimming strategy, their bottom line will be negatively affected as consumers find it
difficult to differentiate between “near identical” iPhone clones.

Due to grey markets, the iPhone is available in China for approximately 4000 RMB.
Copycat iPhones such as the HiPhone are available for half this price. Apple must be
careful to price the product so that it is perceived as a premium product without driving
potential customers to purchase iPhone replicas.

In addition to these factors, Apple must consider it’s overall iPhone strategy when pricing
the iPhone in China. As discussed earlier, the race has begun amongst Nokia, RIM, Palm,
Microsoft and Google, to capture developer resources as applications will be one on the
key driving forces behind future iPhone sales. Establishing a first mover advantage in this
race is vital. Hence, I recommend Apple aggressively price the iPhone within China in
order to establish a large user base for Chinese application developers to target.
Capturing developer resources is at the heart of the iPhone’s long term strategy.

Considering the price sensitivity of the target markets and the above information, I
recommend a price point of 2600 RMB for an 8GB iPhone whilst pricing the 16GB iPhone
at 3800 RMB.

5.3 Distribution (Place)


Choice of distribution within China is an extremely important decision. Apple have
traditionally maintained a tight control over the marketing and distribution channels of it’s
products. However, they will need to alter this strategy when entering China. Apple has just
one self owned store in Beijing, hence they will need to find appropriate retail partners. I
recommend that they partner with the company, Best Buy (China), of which they have an
established relationship built in the USA. Additionally, I would recommend that they partner
with China Mobile’s largest partner as this will offer the best market reach. Apple should
initially focus on the 3 major cities of Shanghai, Beijing and Hong Kong; as a large portion
mid-high income earners are located in these regions.

In addition to this, customer will be able to order the iPhone from Apple’s online store. As
this channel offers financial benefits to Apple, they will entice customer with a free laser
engraving.

5.4 Promotion
Building hype around the launch of the iPhone will be difficult in China, as customer are
well accustomed to smart phones and technology such as the iPhone. Attracting the
attention of the media will require more than just a simple product announcement. Apple
must market the iPhone as something entirely new an innovative; of which the Chinese
have never seen. I recommend focusing on a select few “killer features” that will
demonstrate to the Chinese consumers that the iPhone a new wave of mobile technology.

By focusing on iPhone applications, Apple can immediately differentiate itself from the
iPhone clones which are unable to run iPhone applications. Furthermore, demonstration
the iPhone’s Pin-Ying character recognition technology will add further differenciation.
Finally, I recommend that Apple market the iPhone as a gaming platform as casual gaming
is incredibly popular in China.

In relation to Advertising & Public Relations, I recommend that Apple adopts a holistic
control method such that advertising spend is greatest when publicity is lowest. Similarly,
advertising budgets should be reduced when PR is high. By adopting this strategy, Apple
will appear to be constantly “in the press” and will make it very difficult for competitors to
capture consumer attention.

6. Conclusion
Entering the highly competitive mobile market is clearly a complex problem. Apple must
consider the political differences when choosing an exclusive partner. In China, nothing is
certain as the government always have the final say.
10

Marketing the iPhone in China will require adaptation by Apple on a number of fronts. They
cannot rely on their loyal user base to drive initial sale. They must find a way to appeal to
the Chinese culture. Fundamentally, the Chinese are different to Europeans and
Americans. They use their mobile in different ways. Apple must focus on the iPhone’s
unique features that will resonate with Chinese consumers. Furthermore, Apple need to
market the iPhone as an application platform so as to differentiate itself from copycat
competitors.

The importance of gaining access to the Chinese market goes beyond revenue generation
for Apple. The iPhone is a fantastic product that will help build strong brand recognition
and undoubtedly lead to future sales of additional Apple products. As Apple have
experienced in other countries, the “halo effect” of the iPhone is a powerful means of
driving future sales & creating brand loyalty.

11

7. Appendix
Fig 3: China Monthly Growth by Operator March 2007 - March 2008

Source: http://www.cellular-news.com/story/30882.php

Fig 4: China Population Density

Source: http://en.wikipedia.org/wiki/Demographics_of_the_People's_Republic_of_China
12

Fig 5: Population of China

Source: http://en.wikipedia.org/wiki/Demographics_of_the_People's_Republic_of_China

Fig 6: Population Projection

1,500M
1,461M 1,463M 1,465M

1,430M
1,425M

1,347M
1,350M

1,265M
1,275M

1,200M
2000 2010 2020 2030 2040 2050

Data from: http://en.wikipedia.org/wiki/Demographics_of_the_People's_Republic_of_China

13

Fig 7: Age Distribution

30%

26.7%

22.5%
22.8%
20.3%
18.2%
15%

7.5% 9.4%

2.3%
0%
Under 15 15-29 30-44 45-59 60-74 75-84 0.2%
85+

Fig 8: Population Pyramid 2006

Source: http://commons.wikimedia.org/wiki/File:Chinapop.svg

14

Fig 9: Sex Distribution 2009

Males Females

51.53%

2007

48.47%

47% 48.25% 49.5% 50.75% 52%

Source: http://en.wikipedia.org/wiki/Demographics_of_the_People's_Republic_of_China

Fig 10: Educational attainment

No Schooling 15.6%

Completed Primary 35.7%

Some Secondary 34%

Complete Secondary 11.1%

Some Postgraduate 3.6%

0% 10% 20% 30% 40%

Source: http://en.wikipedia.org/wiki/Demographics_of_the_People's_Republic_of_China

15

Fig 11: Total Worldwide iPhone Sales (Millions)

Source: http://en.wikipedia.org/wiki/File:IPhone_sales_per_quarter.svg

Fig 12: iPod Unit Sales per Quarter

Fiscal Year Q1 Q2 Q3 Q4
2002 125,000[1] 57,000[2] 54,000[3] 140,000[4]
2003 219,000[5] 78,000[6] 304,000[7] 336,000[8]
2004 733,000[9] 807,000[10] 860,000[11] 2,016,000[12]
2005 4,580,000[13] 5,311,000[14] 6,155,000[15] 6,451,000[16]
2006 14,043,000[17] 8,526,000[18] 8,111,000[19] 8,729,000[20]
2007 21,066,000[21] 10,549,000[22] 9,815,000[23] 10,200,000[24]
2008 22,121,000[25] 10,644,000[26] 10,011,000[27] 11,052,000[28]
2009 22,727,000[29]
Fiscal Year Q1 Q2 Q3 Q4

Source: http://en.wikipedia.org/wiki/IPhone

16

Fig 13: iPhone Worldwide Availability

Source: http://en.wikipedia.org/wiki/IPhone

17

8. Bibliography
8.1 Publications
Philip Kotler, 2005, Principals of Marketing, 4th Edition, Pearson Education.

8.2 Webpages
CNet, Apple doubles its iPhone market share, 16 June 2009,
http://news.cnet.com/8301-13579_3-10245339-37.html

AppleInsider, Apple added to short-term Alpha List at Piper Jaffray, 17 June 2009,
http://www.appleinsider.com/print/08/09/02/apple_added_to_short_term_alpha_list_at_pip
er_jaffray.html

China Unicom, China Unicom (Hong Kong) Limited Announces 2008 Annual Results, 16
June 2009, http://www.chinaunicom.com.hk/en/press/press_release/news.html?id=437

International Telecommunications Union, Market Information and Statistics (STAT), 16


June 2009, http://www.itu.int/ITU-D/ict/statistics/ict/index.html

Datamation, Why Apple and China are simply incompatible, 16 June 2009,
http://itmanagement.earthweb.com/columns/article.php/3760826/Why+Apple+and+China+
are+Simply+Incompatible.htm

USA Today, Chinese economy slows to still sizzling 11.5% growth, 16 June 2009
http://www.usatoday.com/money/world/2007-10-25-china-gdp_N.htm7

China Mobile Ltd, Business Review, 16 June 2009,


http://www.chinamobileltd.com/op.php?menu=3

Techcrunch, Apple’s App Store: 1 Billion Served, 15 June 2009,


http://www.techcrunch.com/2009/04/23/apples-app-store-1-billion-served/

Apple a Day, Soaring Mac market share means more headaches for Microsoft, 16 June,
http://weblogs.baltimoresun.com/business/appleaday/blog/2008/05/soaring_mac_market_
share_means.html

MindBranch, Electronic Games and Gaming, 15 June 2009,


http://www.mindbranch.com/Electronic-Games-Gaming-R2-1179/

Apple, iPhone 3GS Keyboard, 16 June,


http://www.apple.com/iphone/iphone-3g-s/keyboard.html

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