No wonder Google backed down on their threats to pull out of China. There’s much money to be made from China’s growing middle class, but Google’s headaches are not over yet thanks to Apple.
The China Tracker, Paul Denlinger, reports that Apple has opened its second store in China’s Shanghai Pudong district, and it features the world’s largest pieces of curved glass. In addition, Apple plans to open 25 more stores in China by the end of 2011 where computers, iPhones, iPods, and iPads will be sold.
Why does this mean war between Google and Apple? Because Google is selling its Android platform (mobile phones, etc) to the Chinese consumer, but Apple and other competitors have a sweater deal. You’ll need to read Denlinger to learn the details.
Apple’s edge comes from having most of its products assembled in China and a deal with China Unicom to buy its products so Apple has no risk since there is a no return policy. The risk belongs to Unicom.
In fact, Google’s decision to confront China’s government over censorship was not a good idea since it has tainted Google’s image in China while increasing it in the West where the Chinese consumer does not shop. Meanwhile, the winner will probably be the Chinese middle class when these two giants have a price war to see who wins.
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Lloyd Lofthouse is the author of the award winning My Splendid Concubine and writes The Soulful Veteran and Crazy Normal.
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