Promotion
The history of Chinese culture shows that each company that wants to enter the country’s market has to consider Chinese traditions and beliefs. Apple should also pay increased attention to its marketing strategy since its core principles are heavily based on its American origins. Currently, Apple’s plan does not seem to be adapted to the Chinese market’s preferences. For example, the company does not consider the fact that Chinese customers prefer flagship phones over cheaper models since phones have a status role in the eyes of Chinese people (Spence).
Moreover, the application market in China, similarly to the national culture, is self-contained. The most popular apps for communication, for example, are locally manufactured and not international (Spence). The combination of these factors does not help Apple stand out from its competitors on its usual strategy of providing clients with a streamlined experience.
Huawei, as a contrast, has an advantage in the promotion, being a nationally supported brand. Huawei is a Chinese brand that is designed and manufactured in China, and each of its improvement is met with national pride and a sense of accomplishment (“Apple iPhone Shipments”). Therefore, the Chinese company has the advantage of understanding the intricacies of the national culture. Huawei has a broad reach with many models, each having their separate target audience.
To compete with Huawei, Apple has to review its relationship with Chinese customers and put them first. The promotion has to be connected to the national culture – iPhones produced in China for China are a possible way of raising customers’ trust towards the American company. Localized high-quality customer service and exclusive flagship properties may also entice Chinese customers to switch to iPhones.
Politics
At the present moment, the tensions between the US and Chinese governments on the smartphone market impact the sales of both Huawei and Apple devices in the two nations. Apple does not have any political advantages over its Chinese competitors in Asia (“Strategy Analytics”). As a result, Apple is preceded by four other brands, all of which are Chinese. The American company can try to work with the Chinese government to weaken the restrictions on the market.
Financing programs connected to employment and education may grant Apple an upper hand and allow it to expand the phones’ reach to various customers. Apple already had to lower its prices on the latest smartphones to compete in China. The company may need to collaborate with the officials further to deliver cheaper products or convince Chinese consumers to use iPhones instead of Android devices.
The leading Chinese competitor, Huawei, is supported by the local government. This relationship grants unique brand privileges and raises its image in the market. Here, the connection between a strong national culture and government help can be seen. Huawei understands the needs of Chinese customers and improves the industry through job creation, national pride, and innovation. Thus, the Chinese brand outperforms Apple in the political sphere as well.
To succeed, Apple has to appeal to the Chinese client’s sense of cultural appreciation. Apple has to work with Chinese officials to deliver solutions for the local market. The industry of smartphone development is rapidly changing in China, and Apple’s approach to the design and features of iPhones does not fit with its competitors (“Apple iPhone Shipments”). Apple’s contribution to the local developers and entrepreneurs may help it achieve the favor of the Chinese government.
Works Cited
“Apple iPhone Shipments Dive in China as Huawei Tightens Grip.” Bloomberg. 2019. Web.
Spence, Ewan. “The iPhone Failure in China Illustrates Apple’s Latest Problem.” Forbes. 2019.
“Strategy Analytics: China Smartphone Shipments Fell 11 Percent in Q4 2018.” Strategy Analytics. 2019. Web.