1 Simple Reason Why Apple Inc. (AAPL) Will Always Make Money in China

But after taking a second to think about this seemingly surefire strategy, I question whether it’s even necessary to build an iPhone Mini. Thinking about it, I think China is so Apple-crazy that Apple will be fine either way.

Why China will always love Apple
To put it simply, Apple is still Apple in Chinese minds. They covet the company’s simplistic, rebellious, and sophisticated brand so much that Apple was China’s “Most Popular Brand” in 2012.

According to the Boston Consulting Group, China’s affluent class — with disposable incomes of $20,000-$40,000 — is 120 million people strong, and expected to grow to 280 million in 2020. One key facet of their shopping habits:

[They] seek status and recognition. They want to exhibit their new socioeconomic position by buying brands that were once unaffordable. They often feel enormous social and peer pressure to “look good”.

And from what I know of my friends and family friends, it’s true. It’s not uncommon to see Chinese consumers choose Apple simply because it’s in vogue. That’s pretty apparent after talking to my Chinese friends who shelled out $850 (5,288 yuan) to buy the phone outright.

So even if the company doesn’t gain the most software or hardware market share, I still believe that Apple will see consumers flock to the iPhone. Now, it may not be their first smartphone, but as the brand-conscious Chinese consumer moves upward through society, I think you can bet that they’ll switch to Apple.

In short, I wouldn’t worry so much about the mobile phone statistics or follow news about iPhone Minis. Apple is still very relevant and remains the dominant cultural force and style brand of technology in today’s China. No matter what happens, Apple is a great place to invest for the long term.

The article 1 Simple Reason Why Apple Will Always Make Money in China originally appeared on Fool.com and is written by Kevin Chen.

Fool contributor Kevin Chen has no position in any stocks mentioned. You can follow him on Twitter at @TMFKang or on Google+. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.

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