In December 2012, IDC released a report of smartphone sales figures in China and even after extraordinary craze over iPad in China the best Apple could manage is to be 6th position over number of devices sold in China. Does this mean things look bleak in the journey forward for Apple? Or is it a case of adaption problems for Apple? Well, the scenario seems to be the same for all tech giants including Google and Amazon. Welcome to the land that hates being locked down!
This article is an extended version of Steven Millward’s article published on TechInAsia “Dear Apple, Amazon, Google: Here’s Why Chinese Consumers Hate Your Ecosystems”.
Steven claims that the major reason for tech giants to fail in China is that the lack of flexibility in their respective mobile operating systems. While Android OS is known for its openness the scenario seems to be quite different in China for Google. After the implementation of the Great Firewall Blocking in China way back in 2007 that started with blocking of Youtube alone the situation intensified over the years and most Google services are currently banned in China. The Chinese users are more accustomed to, and love using local flavours of Google Services that constitute of major part of Android OS. Baidu seems to have captured the hearts of most Chinese users with its cloud storage options and the rise of various third party Android App Stores provide alternatives to Google Play in China.
Most of the revenue Google makes is through various features of the OS and not from the OS or hardware directly. For Google the major source of revenue from Android is when users use their services more and when Google can push more ads in those services. But with the blockage of most Google services in China it all boils down to Android being a more tweaked version of Google-less which is as good as the totally customised version of Android OS on Amazon’s Kindle Fire range of tablets.
Coming to Apple, well, it is a disaster of an ecosystem for a country filled with people who love more openness that what even Android provides. Even the tiniest of things on iOS devices are controlled by Apple’s guidelines, right from creating an Apple ID to syncing content on to the devices to installing apps on the devices. The only sort of freedom that iOS provides is through the recent surge of pirated app stores and jailbreak options which again are very limited when compared to the options available on Android devices.
What does the future hold on for Apple and Google in China? Our guess is that though Google might very well be having chances of extending their market share beyond 85% in China the revenue made will still be better for Apple. The only way Google can really generate more revenue for itself from Android OS in China is by bypassing the Great Firewall Blocking which might not happen that easily. But for Apple it is more about adapting and tweaking its own policies and please the Chinese consumers better with its services. Apple is keenly trying its hand in making strategic partnership with major Chinese carriers and recent rumours even suggest of a Global iPhone 5S that will ensure an early launch of iPhone 5 in China. With so many developments happening the year 2013 will prove to be critical for both Apple and Google to capture the Chinese consumer market and milk out more revenue.