Apple's Beats brand in April unveiled the Powerbeats Pro, a redesigned wire-free version of its popular fitness-oriented Powerbeats earbuds.
Apple Store Expansion in China Said to Have Slowed Due to Red Tape, Fraud, and Other Factors
In 2015 and 2016, Apple aggressively expanded its retail presence in China with 30 new stores, according to the Apple Storefronts tracker. Since the start of 2017, however, Apple has opened just five new locations in the country.
Apple's newest store in China in Suzhou
The Information's Wayne Ma has shared a report today that offers explanations for the slowdown, including China's bureaucratic government, scalpers, previously-reported fraud, and increasing competition from Chinese smartphone makers. The report is based on interviews with 17 former Apple employees.
On government bureaucracy:
As a result of these difficulties, Apple is said to have "abruptly changed" its retail expansion plans in mainland China in 2017, resulting in the dramatic slowdown in grand openings. Apple's latest store in China opened in the city of Suzhou on September 21, coinciding with iPhone XS and iPhone XS Max launch day.
Last quarter, Apple brought in revenue of $9.5 billion from the Greater China region, including Taiwan, Hong Kong, and Macao. Greater China accounted for 17.9 percent of Apple's revenue in the quarter, making it the company's third largest market, behind the United States and Europe.
Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
The Information's Wayne Ma has shared a report today that offers explanations for the slowdown, including China's bureaucratic government, scalpers, previously-reported fraud, and increasing competition from Chinese smartphone makers. The report is based on interviews with 17 former Apple employees.
On government bureaucracy:
Apple had to navigate a maze of government bureaucracy to obtain everything from business and tax licenses to construction, fire and customs permits for imported building materials, former employees say. The regulatory framework in China is far more complicated than in the U.S., with many more layers of government, these former employee say, and it’s far more opaque. Employees frequently scrambled to chase down permits and local approvals to keep store openings on track, they said.On scalpers:
Apple, too, had to contend with scalpers, known as "yellow cows" in colloquial Chinese. These scalpers swarmed its stores and elbowed out other customers during product launches and in-store promotions. …Other factors, according to those interviewed, included low-level government officials asking for free iPhones and other products as a form of bribery, a tug-of-war between the Beijing and Shanghai local governments over taxes, and a vibrant gray market for iPhones smuggled from Hong Kong.
Apple executives worried they were losing control of the customer experience in their stores, and along with it opportunities to interact with real consumers. The scalpers showed little interest in the accessories and add-on services Apple likes to offer customers.
As a result of these difficulties, Apple is said to have "abruptly changed" its retail expansion plans in mainland China in 2017, resulting in the dramatic slowdown in grand openings. Apple's latest store in China opened in the city of Suzhou on September 21, coinciding with iPhone XS and iPhone XS Max launch day.
Last quarter, Apple brought in revenue of $9.5 billion from the Greater China region, including Taiwan, Hong Kong, and Macao. Greater China accounted for 17.9 percent of Apple's revenue in the quarter, making it the company's third largest market, behind the United States and Europe.
Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.
Related Roundup: Apple Stores
Tag: China
[ 23 comments ]
Top Rated Comments
(View all)
8 months ago
Apple, too, had to contend with scalpers, known as "yellow cows" in colloquial Chinese. These scalpers swarmed its stores and elbowed out other customers during product launches and in-store promotions. ...
This is the most exciting Apple-related thing that has ever happened.
8 months ago
WHAT!!?? Fraud!!?? In CHINA!!?? I just can't believe that!
But it doesn't matter...soon there will be an Aple Store right next door, backed by the Chinese Government.
But it doesn't matter...soon there will be an Aple Store right next door, backed by the Chinese Government.
8 months ago
China is all over the MacRumors site today.
Why are scalpers known as Yellow Cows?
Why are scalpers known as Yellow Cows?
8 months ago
So anything China related is automatically in the social and political forum?
8 months ago
Why are scalpers known as Yellow Cows?
That was the most interesting part of the the story for me.China is all over the MacRumors site today.
Actually, they have been all over MR for a while now, I just can't remember it ever being a positive story for Apple.If Apple's push into China ends up working out for them, it will look like a genius move. So far, it looks like it is nothing but problems.
So anything China related is automatically in the social and political forum?
Probably because every China related story on MR, including this one, involves something political.
8 months ago
don't blame them, this article brought up so much memory when i was in china couple years back and i had to fight bunch of ppl who were cutting in lines to get a taxi,
alot of these low-level gov't officials grew up with the peasant revolution and therefore don't have an education, its really a dog eat dog world over there often times.
when they see apple trying to open up a store on their turf they want to exploit them for $$$ as much as possible. hence the red tape nightmare
alot of these low-level gov't officials grew up with the peasant revolution and therefore don't have an education, its really a dog eat dog world over there often times.
when they see apple trying to open up a store on their turf they want to exploit them for $$$ as much as possible. hence the red tape nightmare
8 months ago
This is the most exciting Apple-related thing that has ever happened.
I think you are making a moo-t point.
8 months ago
Yet, Apple is still trying to strengten human rights and data privacy - so expect further bureaucratic hurdles to come...
[ Read All Comments ]
Satechi, known for its line of accessories for Apple's iOS and Mac devices, today announced the launch of its first HomeKit product, the Dual Smart Outlet.
Priced at $60, the Dual Smart...
Kanex today announced the launch of its iAdapt Multiport Docking Station for the 2018 iPad Pro models, designed to add a range of additional ports to the devices using the built-in USB-C port.
...
Microsoft has released a native Mac version of its To-Do app for the first time, meaning macOS users will no longer have to rely on company's the web app to access the to-do list service.
...
Apple appears to be continuing its recent trend of making app subscriptions more transparent and manageable, as evidenced by another change discovered in the latest developer beta of iOS 13. When you...
Belkin today announced that its InvisiGlass Ultra Front and Back Protection for the latest iPhone models is now available for purchase from Apple.
The InvisiGlass Ultra Front and Back...
Apple this morning released the second beta of watchOS 6, the software that runs on the Apple Watch. The second beta comes two weeks after Apple first unveiled the new update at the Worldwide...
Apple today seeded the second beta of an upcoming tvOS 13 update to developers, two weeks after first unveiling the tvOS 13 software at the Worldwide Developers Conference.
Designed for the...
Aspyr has announced that today is the last day of sales for its 32-bit Mac games, in anticipation of Apple's upcoming move to 64-bit only apps on macOS Catalina later this year.
After...
