Monday, October 3, 2016

Ch. 5 - Developing a Global Vision

Last week, Apple opened its first store in Mexico making their total tally of retail stores 486 in 19 countries. It also has the online store available in total of 39 countries. Apple strive for globalization, out of its 486 retail stores 219 are outside United States. In the first quarter of 2016, iPhone’s market share was 14.8 percent, only below its main overseas competitor Samsung (23.2%). Apple had its first double-digit decline year on year, with iPhone sales down 14 percent. Even though, Apple's "upgrade program" in the U.S. has helped to drive sales in its largest smartphone market. But, Apple is yet to explore ways to reform their second-hand iPhones coming through the program in emerging markets.

Chine has been a troublesome market for Apple. During the third quarter of 2016 ended in June, Apple's sales in China suffered the worst hit, decreasing 33 percent year-on-year, according to media reports. Apple Inc. has set up a research and development (R&D) center in Beijing in order to boost their sales there.

Apple Inc. outsource their manufacturing jobs. Most of the manufacturing for Apple’s iPhone parts is done around the world, and they all are assembled in China. Apple contracts with a local Chinese company Foxconn to assemble its iProducts in china.


Moreover, Apple Inc. practices global marketing standardization i.e. they manufacture the same products for all the countries around the globe. Although, iPhones do have options for specific languages for non-English users. 

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