There's no arguing with those numbers. The one thing that did occur to me while reading this was the service providers in China. I believe for the Internet and social media, at least, there is still limited access and what we in the US call censorship. It doesn't seem to be a problem for the hardware makers as this study indicates. But I wonder if that would discourage OEMs from launching there first. Can the devices really strut their stuff if the access and content are limited? I'm curious.
"I am just not sure how the company would negotiate that tricky dance or explain it to US consumers."
Is there any fear that Apple might lose its U.S. users' esteem if it launches its products in China first? How bad will this affect Apple revenue in the U.S.? I'll presume that Apple can easily get away with that... Maybe not?
Hospice, I am almost sure Apple fans will find a way to explain whatever decision the company takes. It shouldn't be a problem for them and the rest of the consumer base may not care either. They just want the product to work while nationalists concerned about the US losing status don't have a loud enough voice.
Barbara, Right. However, buyers in China aren't worrying that much about their access to the Web. They've learned to bypass or ignore government controls. And, in terms of demonstrating the workings of its iPhone and iPad, Apple doesn't really need to get into areas the Chinese government may not want it to thread.
A bigger concern for Apple might be related to its ensuring the product meets consumer standards.
I agree with Bolaji--Apple customers won't flinch if the company changes its methods, as long as the products retain their quality and technology. Among this base of fanatic customers, Apple can do no wrong. Judging by iPad sales, customers weren't discouraged by Apple's relationship with Foxconn. And it doesn't look like other issues are putting a dent in demand either. The new Ipad runs hot, eats up power and runs through a month's worth of downloads in a day or two. Even after paying $500 for a tablet, Apple users are happily shelling out more money for the services.
@Barbara: I agree with you completely. Apple enjoys a very high customer loyalty ratio. The devices have become a part of the consumers life and they are very content with it. I rarely see anyone moving from an iphone to another smartphone. People are really hooked onto it.
Even if the price taga are high and there are a few minor issues with heating etc. The Apple consumers will keep on buying any product the manufacturer puts to market. And I think this has to do with the innovation that Apple puts into its products.
That about sums it up. You queue up for hours to pay $500 for a product, it heats up, gobbles up your air time, your service provider tells you to pay more, then somebody tells you the conditions under which the device is made isn't up to standards you would accept personally and you still don't see anything wrong with any of this! It's a religion and whatever the company does is just perfect.
Bolaji: put that way, it really does sound crazy. Worse yet, the media feeds the frenzy by covering the lines. It's similar to the Black Friday situation: people's desire for an item becomes a spectator sport. At least the folks in the Apple lines seem to behave better...
Bolaji,
I think the grabber in this article is worth some serious consideration. If by 2020, the US market is so diminished in favor of China, that new product introductions will be presented into China, then it will follow that whatever China thinks, China gets in the way of technology advancement benefits. That is like putting a turbo boost into China's economic engine. He who has the most coin, calls the shots. Very astute article.
Barbara,
Good observation and good question. I think there is a mass mind mentality in China as influenced by the government. If the government says censorship is good for the people, then it must be. Maybe technology and freedom of expression aren't mutually exclusive if every thing that needs to be said can be said as far as the people are concerned. Was there any outrage from within China when the Foxconn working conditions were exposed? Rhetorical question.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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