Apple has strengthened its presence in China by inaugurating the country’s largest Apple Store in Shanghai. What is Tim Cook’s plan?
Other than moving to India or Vietnam. Apple has strengthened its presence in China by opening in Shanghai the largest Apple Store in the country, as well as the largest outside the United States and second in the world.
The shop, the eighth in the metropolis (New York stops at seven), is located near the Jing’an Temple. At the presentation of the structure, which cost 11.6 million dollars, both the CEO of the Cupertino company, Tim Cook and the senior vice president of the company’s retail sector, Deirdre O’Brien were present, confirming the importance of the event.
Hundreds of people waited for the opening of the center, confirming - at least in theory - how the American brand continues to be considered a status symbol by Chinese customers despite the commercial and geopolitical war underway between the United States and China.
Apple’s move describes the strategy of the group, intending to repel the assault of the very fierce local competitors, Huawei first and foremost, and to relaunch sales in a market, that of the People’s Republic of China, which is as strategic as it is very delicate.
Apple’s moves
“We are thrilled to open Apple Jing’an, a store that seamlessly blends the traditional with the modern and integrates seamlessly with this historic neighborhood of Shanghai,” said Deirdre O’Brien. The company, meanwhile, described the store just opened in Shanghai with futuristic tones: "From our phenomenal line of iPhones to the new 13 and 15-inch MacBook Air, Apple Jing’an brings together all our products and services together with a team extraordinary to create a truly magical shopping experience for our customers.”
In any case, Cook’s visit beyond the Wall went far beyond the mere opening of a shop. The CEO of the Californian company smiled for photographers on the day of the inauguration of the Shanghai store and then immediately headed to Beijing for the China Development Forum, where business leaders interact with Chinese politicians.
After all, the numbers speak for themselves: iPhone sales in China have decreased by 24% in the first six weeks of the year (historically a peak season for Chinese buyers intending to purchase a new phone). The government ban on Apple products (including iPhones) launched by the Chinese Communist Party for officials of state agencies and large government-backed companies, aggravated by recent tensions with the USA, does not help.
“We continue to invest in China, in the supply chain, in research and development and our stores,” however, Cook told Chinese Trade Minister Wang Wentao. For his part, Wang said that China is willing to work with the United States to create a fair, stable, and predictable business environment for American and Chinese companies, that the country is promoting technological innovation, and that sectors such as artificial intelligence and cloud computing offer huge opportunities for companies like Apple.
A complicated situation
Apple, as mentioned, is seeing a substantial drop in shipments of iPhones in China. Specifically, a reduction of 33% was detected in February compared to the previous year, mainly due to the growing competition from Chinese rivals such as Huawei and Xiaomi. The US giant shipped around 2.4 million smartphones over the Wall in the month under review, marking the second consecutive decline of the year and extending the trend of weakening demand for the company’s flagship device (in its most strategic foreign market).
The situation became complicated for the company led by Tim Cook almost coinciding with Huawei’s rebirth in the premium 5G smartphone segment which took place in September last year. After the release of the Mate 60 series, the Chinese company recorded a surge in sales on the domestic market.
In 2023, according to IDC Research, the Californian company achieved smartphone leadership in China for the first time, with a record market share of 17.3%. Now, according to data from Counterpoint Research, that same share would have fallen behind that of Vivo, Huawei, and Honor.
As if that wasn’t enough, Apple has to deal with two major legal problems: a fine from the European Union of almost 2 billion dollars for anti-competitive streaming practices music and a US government lawsuit alleging that the company violated antitrust laws.
Original article published on Money.it Italy 2024-04-10 06:52:00. Original title: Perché Apple rilancia la sua scommessa sulla Cina
