Miruna Codeanu

Apple’s fall

In espresso on July 25, 2013 at 6:35 am

2013, the year in which everyone based their growth on China, or mostly everyone, or basically the ones that matter. From tech companies to the cosmetic industry everyone thought they will boost their sales in Asia, China being the largest Asian market. Sure, any growing economy means a developing market which translates into business opportunities. Apple followed this thinking pattern. Well, right not China is not feeling so well, causes are numerous. Apple’s fall? No, I’m not surprised. Was it foreseeable? Yes. 

America’s most promising company is not growing anymore:

Apple explained their slowdown through China’s slowdown. That’s right, but that is bad management any way you put it. I previously wrote about it, I did not think, at any moment, that this was a smart move. Sure, Apple is America’s market leader on many segments but China is no US.  One of the trends for 2013 is “local” as previously mentioned, not only “buy local” but also understanding local culture. Apple basically tried to sell to a market for which it did not have a product. Sure, there were news about students making loans to buy Apple products and sure, everyone thought that students drive the “coolness” of a product. True, for the American and alike markets. With China, it just might be a little bit different. Probably even in China young people set trends, but it is a communist country after all, is ok to show off? Will a state that prohibited a tv show because someone said they’d rather cry in the back of a BMW than on a bike, stay out of this? China is a market with many particularities, besides the ones of an emerging market, it is a totally different culture, which mean you sell differently. Apple took its concept to concept forgetting that adaptation to the environment is essential. 

Apple, remember the famous case study about selling Coca Cola in Africa? Apply it. 

  1. […] said it before, I never believed Apple would make it in China. Never thought China was a good market for Apple. Not for the Chinese mass market. However, luxury […]

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