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China Is A Good Market, But Here Are Apple Inc. (AAPL)’s Problems There

China may be a great market for Apple Inc. (NASDAQ:AAPL) but the company is not without its problems in that market.

According to Bloomberg’s Yvonne Man, even though Apple Inc. (NASDAQ:AAPL) may have just seen China beat America as its biggest market, the country does present its own challenges to doing business.

“You’ve got new competition and run-ins with the government obviously. Just the latest release of the iPhone, they were actually delayed by a month because of this protracted regulatory review process,” Man pointed out.

The Bloomberg reporter along with colleague Angie Lau were reacting to news from the Financial Times that China has overtaken the U.S. as the largest market for Apple Inc. (NASDAQ:AAPL).

Man said that apart from run-ins with the government, China is also the home of many rivals in this space such as Xiaomi which is dreaming of becoming the biggest smartphone maker in the world. These rivals are popular because they’re offering dirt cheap alternatives but similar marketing and design to the pricey iPhone, she said.

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According to a recent report from the Financial Times, an analyst from UBS forecasted that China accounted for 36% of iPhone shipments last quarter, way higher than the 24% and 40% the U.S. and other regions accounted for, Man said. China is up from 22% a year ago, Man added.

 The Bloomberg personality said that Apple Inc. (NASDAQ:AAPL) CEO Tim Cook recently called this change saying that it’s only a matter of time before China becomes their biggest market. Man said that the change is helped by the deal with China Mobile, the biggest wireless carrier in the world in terms of subscribers, to sell the iPhone.

Christopher R. Hansen’s Valiant Capital owned about 1.59 million Apple Inc. (NASDAQ:AAPL) shares by the end of September.

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