Wikileaks is known to reveal embarrassing + highly confidential info about MNC’s & governments and this time they have some AAPL details it seems. Apparently Apple has been fighting counterfeit products in China since a long time. In contrast to what we think is a recent issue with fake Apple stores in China, Apple’s major problem has been counterfeit products sold under Apple’s brand name across China (and outside China.)
Last month we saw fake Apple Stores in a small Chinese province and later it was discovered that there were as many as 5 fake stores in the same area. Soon we heard about some stores shutting down, Chinese authorities had swung in action. Some of these stores were not taken down, as they had valid business clearance / licenses and were selling genuine Apple products. Now, China is a big market and if a small province like Kunming can have so many fake stores, imagine what the scene would be like in rest of China. China BTW, is the most populous country in the world.
Wiki-leaks leaked cables reveal Apple’s concern and fight against duplicate products with Apple branding and not the fake Apple stores per say. It is a known fact that small time Chinese manufacturers create replica of popular brands and sell them across the globe. No company in the field of consumer electronics can do mass production without having a Chinese affiliation and thus their designs, spares and IP is leaked or easily available to the ones making counterfeit products.
The report by CNN reveals that Apple has hired former security officials from Pfizer to combat gadget piracy. Given that its four Chinese stores are he highest grossing ones across the globe, the potential of Apple in China cannot be taken lightly. Chinese government isn’t very active in stopping such instances and that doesn’t help Apple either. Sometime back even Google had to go public with its security / troubles in China.
Apple has chosen China amongst the BRIC nations to invest in and there is no doubt that in coming years China could become Apple’s No. 1 market. The iPhone 5 is said to be launching with China Mobile sometime later this year. For now, Apple has its aggressive side to show when dealing with counterfeits.