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Business / iphone 5

An Apple a day isn't keeping critics away

By Gao Yuan (China Daily) Updated: 2012-10-05 09:18

In August, Apple's market value crossed $600 billion, making it the most valuable American company of all time. The honor had belonged to Microsoft Corp for a long time.

JP Morgan estimated days before the launch of iPhone 5 that the new product could add 0.25 to 0.5 percentage point to America's GDP growth in the fourth quarter. Apple's share hit $700 on Sept 18, the fourth trading day after the launch of iPhone 5.

Charles Golvin, Forrester's primary analyst, said Apple is steadily cementing its lead. "This is not about the iPhone 5 versus the Samsung Galaxy S III or the iPad versus the Kindle Fire HD. This is about customers' attachment to the larger ecosystems that those devices inhabit," Golvin said, adding that Apple is the strongest player in building ecosystems.

California-based Apple sold more than 2 million iPads and 2.7 million iPhones in China in the second half of 2011. In the first half of this year, it sold another 4 million devices running iOS operating systems in China, according to Analysys International.

Apple launched its first iPhone in 2007, but China did not catch the iPhone fever until October 2009 when China Unicom (Hong Kong) Ltd introduced iPhone 3GS to the Chinese mainland. It also marked the official debut of Apple's smartphone products. Before that, iPhones had only been smuggled into the mainland.

Almost two years later, China Telecom, the country's oldest telecommunication carrier, started selling contract iPhone 4S. The move made it the second telecom carrier to sell contract iPhone products on the Chinese mainland.

But despite all this hype, Apple is losing its charm.

Besides, Apple is facing many lawsuits in China, some of which are clearly harming its sales. In July, Apple paid $60 million to settle a trademark dispute with Shenzhen-based electronic device maker Proview Technology, clearing the last obstacle for the new iPad to enter China.

At least three lawsuits, involving Facetime, Siri and the Snow Leopard operating system, quickly followed. The litigants were small and medium-sized Chinese companies like Proview.

Yet the strongest hit may be still to come. Analysts worry that once Apple's global patent lawsuit with Samsung lands in China, both companies could face sales slump.

Contact the writer at gaoyuan@chinadaily.com.cn

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