China is Apple’s fastest growing market but the road to success has not been smooth. This case documents
Apple’s journey on this road to success; the role that Tim Cook played on this journey; the basic dynamics of
China’s telecommunications sector, the world’s largest and most dynamic; and obstacles Apple is likely to
encounter on the road to its future there. Apple’s products are predominantly contract manufactured in China
by Foxconn, a Taiwanese company that was the focus of considerable criticism and negative publicity for poor
working conditions and suicides among its young workers. Apple, an aspirational brand in China, was named
the top brand in the world in 2015 by Brand Finance–followed in second place by their global nemesis,
Samsung. The growing consumer power of the Chinese middle class has accelerated demand for Apple
products. Apple’s popularity in China led to considerable counterfeiting or copying of their prototypes, products,
know how, trade secrets, service model, and store concepts. It has spawned a cottage industry that supplies
fake Apple stores with logos, uniforms, shopping bags, shelves and other accessories to make them appear
real. Face-seeking behavior, the propensity of some Chinese to show off high status consumer goods, further
spurs the activities of Apple counterfeiters and imitators to meet market demand. After more than a quarter
century of continuous high levels of economic growth, China’s economy is cooling. Despite a panoply of
obstacles, Apple CEO Tim Cook maintains that China is key to Apple’s bottom line now and in the future.
Identify the technical advantages of past Apple successes
Analyze the incentives and challenges of introducing technology in an international market
Describe possible solutions to overcome these challenges
Instructions
You will complete an informational report presentation (3 to 5 minute VoiceThread (Links to an external site.)
video) addressing the following questions:
Review Apple’s history. What accounts for Apple’s success in the information and communications technology
industry?
Why has Apple been successful in China? What missteps have they made?
What challenges does Apple face in China?
How would you recommend Apple address these challenges ?
What role did Tim Cook play in Apple’s success in China?
In your opinion, is he an appropriate leader to guide Apple into the future (explain why/why not)?