Why does iPad Hesitate to Debut in China Market?

Article by Emma

The iPad has been officially released in nine countries, including Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the United Kingdom since its first launch in the U.S but not in China. Why does Apple Inc. pull out china from its debut lists although China has already been the world’s second largest luxury goods market?Eager Chinese consumers who have planned to buy this tablet-style computer are disappointed at the recent news. As the World Cup is approaching, those tech savvy consumers hope to watch matches, store photos and stream movies by iPad. Certainly there are some probable considerations that Apple Inc. might take.Apple Inc. is likely to think that Chinese can’t afford the high price of iPad. The cheapest product of iPad sold in U.S is 9 which equals nearly RMB 3393 while most front-line workers of China only earn around 0 per month. If one of these workers purchases the cheapest iPad product, he may need to pay 4 months salary, not to mention the tariff.Actually iPad target users are young people between the ages of 22 and 35, most of whom in China are just starting their career without too much money. These people will consider it is not a good value for money to buy an iPad. Furthermore, 3G internet connection fee is “expensive” for most Chinese. One must buy 3G internet connection package which is usually RMB 100 for 50 hours provided major Internet service providers.And official iPhone has not sold well in China market, which can make the decision makers of Apple Inc. choose not to sell iPad in China. Also it is still not sure if the iPad will be as popular overseas as it has been in the U.S.China is notorious for its “Shanzhai” capability. Shanzhai ( simplified Chinese: 山寨 ) refers to Chinese imitation of brands and goods, particularly electronics. Counterfeits in China are nothing new. The Shanzhai culture began with mobile phones and spread to other small devices such as MP3 players and watches. So everything can be Shanzhai-ed. There is no escape of iPad from being Shanzhai-ed.So now because of high market demand for iPad and no official product supply in China, grey iPad market business is thriving and iPads are readily available for use. If you log on to taobao.com the largest e-Commerce website in China, you could find many iPad sellers. How those iPads get to China can be a wonder!