Apple Market Share: It is absolutely no surprise at this point that Apple Inc. (NASDAQ:AAPL) has a strong interest in growing its market share in China. Of course, the company is not alone in realizing that this country offers huge potential to tech companies.
In addition to Apple CEO Tim Cook visiting China earlier this year, the Cupertino-based company has spent quite a bit of time talking about the potential of the market.
If you want to learn more about Apple Inc. (NASDAQ:AAPL) in China, here are a couple of stories that you don’t want to pass by.
Apple Inc. is known for many things, but pricing its devices at the bottom of the market is not one of them. Despite the fact that the company is looking to make headway in China, it is not likely to ever be the lowest priced offering in the country.
This could pose a problem for Apple Inc. (NASDAQ:AAPL) as the company forges ahead with big dreams of domination.
A recent CNBC article touched on this in great detail. More specifically, it covered the Apple iPad and the competition from cheaper tablets.
At this time, Apple is out in front when it comes to the tablet market. Its iPad and iPad mini are dominating across the globe. However, in China there are ultra-low tables coming to market that are sure to increase competition in the years to come.
According to Chinese analysis firm Umeng, Apple currently holds onto an 80 percent table market share in China. This is a big number and one the company doesn’t want to surrender in the future.
The problem is that cheaper alternatives, even those with high end features, are beginning to show up. Here is what researchers for investment bank Nomura had to say:
“We found many iPad-like white-box tablets in Hua Qiang Bei, Shenzhen’s largest consumer electronics mall. These products are sold at retail prices ranging between CNY400-1200 ($65 – $195).”
While some consumers realize that there is nothing like the real thing, others wonder if they are better off skipping over Apple Inc. (NASDAQ:AAPL) and buying a cheaper tablet as a means of saving money.
With China as the company’s fastest growing market, Apple Inc. will continue to spend a lot of advertising dollars in the country. Along with this, they hope to hold onto its tablet market share, despite advances from the competition.
Do you believe Apple Inc. (NASDAQ:AAPL) should be worried about this? Or will its quality and brand recognition continue to win over consumers?
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DISCLOSURE: I have no positions in any stock mentioned.
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