Apple is fast discovering that China may be a land of huge potential, but that it will also come with its own set of challenges, as evidenced by several new developments with both positive and negative overtones. In the former category, the company is close to a deal to offer its latest iPhone 4S via China Telecom (HKEx: 728; NYSE: CHA), China’s third largest carrier, which would follow close on the heels of a similar deal with China Unicom (HKEx: 762; NYSE: CHU), the second largest carrier which will begin selling the iPhone 4S on Friday. (Chinese article) On the negative front, meantime, a group of local writers are preparing to sue Apple for copyright infringement related to the unauthorized use of their material for some apps from Apple’s iPhone store. (Chinese article) Let’s look at the positive news first, which has Chinese media reporting trials have successfully concluded for a version of the iPhone 4S that will work on China Telecom’s 3G network that uses a technology called CDMA EVDO. That deal would mark the latest China inroad for Apple, which could find a better Chinese partner in China Telecom, which is more aggressive and better organized than Unicom, Apple’s oldest China partner. At the same time Chinese media are also reporting that China’s biggest carrier, China Mobile (HKEx: 941; NYSE: CHL), may also be close to an iPhone deal for its 3G network. (Chinese article) But the reports only cite market talk, and such chatter has become so common that I wouldn’t put too much credibility behind this latest rumor. Meantime, Chinese media are also reporting about a looming copyright lawsuit against Apple from a group of 9 Chinese authors, who will seek damages of around 12 million yuan, or about $2 million. This kind of lawsuit is insignificant from to Apple from a financial perspective, even if it loses. But similar lawsuits against big names like Baidu (Nasdaq: BIDU) have brought widespread negative publicity, which could ultimately hurt Apple’s image in China and therefore undermine sales. This lawsuit comes just a month after another legal setback for Apple in China, in this case after a Chinese court ruled another company owned the rights to the iPad name despite objections from Apple. (previous post) Stay tuned for more clashes like these as China becomes an increasingly important market for Apple.
Bottom line: An imminent iPhone 4S deal with China Telecom marks the latest Chinese advance for Apple, while a copyright lawsuit against it is the latest in a growing series of challenges.
Related postings 相关文章:
◙ Apple Suffers Setback in China Lawsuit Loss 苹果在华商标侵权案初尝苦果
◙ Unicom, China Telecom in iPhone 4S Race 中国电信有望领先推出iPhone 4S
◙ Apple Prepares to Take on China Pirates 苹果开始接受人民币付款购买应用软件
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