Apple Pressures Beijing With iPad Snub 苹果在华不售新iPad向中国政府施压

By newsdoug on April 17, 2012

The new iPad: Unavailable in China What do Venezuela and the tiny island nation of Saint Maarten have that China doesn’t? Starting on Friday, the answer will be the latest iPad, as Apple (Nasdaq: AAPL) has just released the latest list of countries where its newest must-have product will go on sale and China is noticeably absent. Many observers might say that Apple is taking a cautious approach to China pending the resolution of a trademark dispute with a near-bankrupt company over the iPad name in the market. But in my view, the exclusion of China from the list is just as much about applying pressure on Beijing for a court ruling in its favor, and says more broadly that Apple could withhold its popular products in the future if it doesn’t believe it is being treated fairly in the market. After all, withholding Apple products could easily anger many Chinese consumers eager to have the latest hot product, perhaps prompting them to hold Beijing responsible. Furthermore, the absence of legally imported iPads will fuel a surge in smuggled products, costing China millions of dollars in lost import duties. But let’s take a look at the specific situation to put things in perspective. Apple announced the launch of its newest iPad on March 7, and the tablet PC went on sale about a week later in the US and several global markets, including Japan, Hong Kong and Singapore in Asia. Another group of countries, mostly in Europe, joined the list about a week later, as sales surged to more than 3 million just 3 days after the initial launch. Now Apple has just announced a third group of countries that will receive the new iPad starting April 20, including the likes of tiny markets like Saint Maarten and Venezuela. (company announcement) But nowhere on the list is there any mention of China, and it’s unclear if Apple will even attempt to launch the new iPad here despite receiving a green light last month from a Shanghai court to keep selling the product in that city until a final ruling in the current trademark dispute. An initial ruling last year in that dispute went in favor of the near bankrupt company, Proview, which claims to own the name due to what looks like a technical error that saw it fail to transfer the trademark after Apple thought it bought the name several years ago. Now the case is being heard under appeal, with a ruling likely in the next few months. I personally agree with Apple’s decision to withhold the new iPad from China for now. Countless disappointed Chinese consumers are likely to voice their frustration, while Apple can conveniently blame its decision on the dispute. In the meantime, Beijing will sure be searching for a way to work out the dispute in a way that makes everyone happy and shows the world it is dedicated to fairness in settling this kind of business dispute.

Bottom line: Apple’s withholding of the new iPad from China is partly due to an ongoing trademark dispute, but is also partly designed to pressure Beijing for fair treatment in the case.

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