Monday, November 22, 2010

Apple's long history of high-end strategy focues

The thing is that Apple has never been a low-end market player in any geography, and some say it would not make sense for them to go in the low-end direction

Apple’s "shoot for the high-end" philosophy has made it the world’s most valuable tech company in terms of market capitalization.

Apple’s strategy in the past has been to maximize profit margin instead of market share.

Apple has never been for the mass market; it has been and will always be for the tech geeks and elites (in China) who don’t care about the lack of China-specific content

Most of Apple’s customers are highly-educated elites, often with experience of living outside China, or even wealthy Chinese who give the devices as gifts without any understanding of how the devices work .


Reference: “Apple revamps its China app store” article from San jose mercury news, by John Boudreau

Is the low-end space the only space in China?

Some argue that in China, you have to make money from low-end users

Apple can dominate the high end Chinese user space of about tens of millions

But if Android can dominate the low end space with hundreds of millions of users, it can be argued that developers will still go there

Innovation Works

Innovation Works
An early-stage venture capital
Founded by Kai-Fu Lee

Apple in China

Without a stronger offering of local apps, apple could miss out on the increasing number of wealthy Chinese who don’t speak English.

Apple needs to create closer relationships with Chinese developers, or they will risk falling behind in the market.

TencentQQ

TencentQQ is a popular portal and messaging service in China

apple4.us

Popular Tech Blog in China:
Apple4.us

Local App Developers in China

A number of low-end local app stores have emerged in China.

Sky-Mobi is backed by Sequoia China