January 15, 2008
How can Apple iPhone pitch into China Mobile Market?
Analysis of:
China Mobile suspends talks with Apple over iPhone launch | www.ftchinese.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: China Mobile suspends talks with Apple over iPhone launch. Due to the single largest subscriber base world wide and the unique market position of China Mobile, Apple may need to dig deeper and pay more patience to pitch into this strategic account.
Analysis: 1. Why it is suspended?
a. China Mobile & China Unicom is engaged on Roaming Fee Hearing hosted by China Telecom Regulator
b. The CEO of both China Mobile and China Unicom may be rotated by China State Council after annual China Congress Session in March
2. What's the major gap?
Apple has insisted on adopting a revenue-sharing model when selling its popular iPhone to other markets.
3. How can Apple access the biggest monopolized market?
a. Due to China Mobile Service market is monopolized by China Mobile & China Unicom with total registered subscriber over 522 million, and China Mobile has around 70% market share, 363 million. Apple is not in the favoriate position on the negotation.
b. Patience is important to keep negotiation alive
c. Apple may adpot more realistic strategy with refined tatics to clinch the deal. Co-branding may be a more favorable solution for both side instead of revenue-sharing program.
Analysis: 1. Why it is suspended?
a. China Mobile & China Unicom is engaged on Roaming Fee Hearing hosted by China Telecom Regulator
b. The CEO of both China Mobile and China Unicom may be rotated by China State Council after annual China Congress Session in March
2. What's the major gap?
Apple has insisted on adopting a revenue-sharing model when selling its popular iPhone to other markets.
3. How can Apple access the biggest monopolized market?
a. Due to China Mobile Service market is monopolized by China Mobile & China Unicom with total registered subscriber over 522 million, and China Mobile has around 70% market share, 363 million. Apple is not in the favoriate position on the negotation.
b. Patience is important to keep negotiation alive
c. Apple may adpot more realistic strategy with refined tatics to clinch the deal. Co-branding may be a more favorable solution for both side instead of revenue-sharing program.
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