Sat, Jan 12, 2013 - Page 15 News List

China to become Apple’s biggest market, CEO says

LOWER-END PHONES?Tim Cook did not respond to rumors that the US firm might be developing lower-cost models to target developing markets like China


Apple Inc expects China to overtake the US as its biggest market, chief executive Tim Cook told a Chinese government news agency.

“China is currently our second-largest market. I believe it will become our first. I believe strongly that it will,” Xinhua news agency quoted Cook as saying in an interview.

The report gave no details of when Cook thought China, already Apple’s second-biggest market, might pass the US. Apple Inc spokespeople in China did not immediately respond to a request for comment.

Apple has said sales in China more than doubled in 2010 and 2011, though growth has slowed in the past year.

Apple’s iPhones, iPads and other gadgets are popular with China’s highest-earning consumers, but the country’s fast-growing smartphone market is dominated by handsets that run on rival Google Inc’s Android system.

Cook was in Beijing to meet with Chinese regulators and managers of state-owned China Unicom Ltd (中國聯通), the first Chinese carrier to support Apple’s iPhone.

Xinhua said Cook did not respond to rumors Apple might be developing a lower-cost iPhone for developing markets such as China.

China Mobile Ltd (中國移動), the world’s biggest phone carrier by subscribers, did not immediately respond to a request for information on whether it was discussing with Apple possible arrangements to support the iPhone.

China Mobile has no formal agreement with Apple, but says its network is used by several million Chinese customers who brought in unlocked iPhones from abroad. China Mobile has more than 700 million subscribers and support from its network could help to promote iPhone use in China.

Apple opened a multistory flagship store on a prominent corner in Beijing’s busy Wangfujing shopping district in October last year, raising its number of Chinese retail outlets to 11. Independent stores also resell Apple products.

According to Xinhua, Cook responded to complaints about wages and other work issues at Foxconn (富士康), the Taiwanese company that assembles Apple’s products in vast factories in China, by saying his company enforces strict codes of conduct for its suppliers.

“We care very deeply about every worker that touches an Apple product, whether they are making it, selling it, serving it or marketing it. We hold ourselves to a very high standard there,” Cook was quoted as saying.

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