Chinese consumers may want to buy nearly that many iPhones all by themselves

The LA Times thinks that Apple could soon sell as many iPhones in China as it sells in the rest of the world. 

Apple sold 72 million iPhones in its fiscal 2011, a staggering number that required all the muscle of the world's most valuable technology company, as well as a network of Asian factories pumping out the devices at a breakneck pace. The sales came from more than 100 countries.

Now Chinese consumers may want to buy nearly that many iPhones all by themselves.

That may well happen, says Morgan Stanley analyst Katy Huberty, who in a note to investors guessed that Apple may soon be selling 57 million iPhones annually in China, capturing 60% of the projected market for smartphone buyers there. That would be a sixfold increase from the 10 million iPhones Chinese consumers bought in 2011. 

The pent-up demand for the iPhone in China is hard to overestimate. The nation's leading carrier, China Mobile, has 650 million mobile subscribers, according to Huberty (compared with about 200 million for second-place China Unicom, which offers the iPhone). China Mobile does not technically support the iPhone because its network isn't compatible. But that hasn't stopped 10 million of its customers from finding ways to use the device anyway.

 

I wonder if Apple will soon need to build "Foxconn's" in every region of the world where it sells more than, say, 10 million iPhones? One in Mexico, one in Brazil, one in, let's say, Portugal.

Not sure there are enough Chinese to go around. Or if Apple wants to become so utterly dependent on one company, one country, one government.

According to MIC Gadget:

On the 30th of January, thousands of hopefuls stood for hours outside a labour agency located in the Chinese city of Zhengzhou. The lines stretched more than 200 meters along the road, and the people who were waiting in line with their applications just hope to get a job at Foxconn as the electronics contracting giant ramps up hiring for its iPhone plant at Zhengzhou.

Foxconn is working with the city of Zhengzhou to double the size of the workforce at its facility there, recruiting an additional 100,000 employees. 

The salary at Foxconn’s Zhengzhou factory is CNY 1650 (basic salary), and the salary would be increased to CNY 2400 – 3200 after the appraisal. What’s more, workers do not need to pay additional money for dormitory and food. Foxconn incorporates the food and housing allowance into the basic salary. 

 

An overview of the book, Zero Sum Future:

In the 20 years before the financial crisis, Davos was almost a festival of globalization -- as political leaders from all over the world bought into the same ideas about the mutual benefits of trade and investment and wooed the same investment bankers and multinational executives. At Davos, this year, the mood is more questioning -- with numerous sessions on rethinking capitalism and on the crisis in the eurozone. The European Union is an organization built around a win-win economic logic. Europe's founding fathers believed that the nations of Europe could put centuries of conflict behind them by concentrating on mutually beneficial economic cooperation. By building a common market and tearing down barriers to trade and investment, they would all become richer -- and, eventually, would get used to working together. Good economics would make good politics. The nations of Europe would grow together.

For decades, this logic worked beautifully. But, faced with a grave economic crisis, this positive win-win logic has gone into reverse. Rather than building each other up, European nations fear that they are dragging each other down.

Nor can it be assumed that a stronger, richer China is good news for America -- as successive U.S. presidents argued all the way back to 1978. On the contrary, both as individuals and as a nation, Americans are getting the queasy feeling that a richer, more powerful China might just mean a relatively poorer, relatively weaker America. In other words, the rise of China is not a win-win for both nations. It is a zero-sum game. 

Ever since Bill Clinton pushed NAFTA and various other free trade agreements through, we've been taught that globalization -- ultimately -- makes for a more prosperous America (and world).

The evidence suggests that while this might be so, "ultimately" can take a very long time. And during that time, a lot of good people experience a (competitive) world of hurt and suffering.

So we look at ways to alleviate or minimize that suffering.

I fear, however,  that the very idea of globalization has become so engrained that the obvious bad aspects of it, such as protracted unemployment, underemployment and the inability of millions to afford quality healthcare, retirement and/or college tuition may lead do-gooders, such as the #OWS folks, into demanding -- and getting -- sanctioned, long-term taxpayer funded relief.

Things like forgiven student loans, guaranteed healthcare under all circumstances, long-term unemployment checks and/or jobs that are artificially created via government tax credits or fiat.

But, wait. These are all good things, right? Affordable tuition. Guaranteed work for those able to work. Help for the poor.

In theory, probably yes. Just like globalization.

But what if, just consider this, those treat only the symptoms? What if this accepted Paul Krugman-style view of economics, where we embrace global markets but create a solid, strong safety net for those unable to compete, is false?

Which is very possible.

Taking care of those on the lowest rungs of the ladder is valid, probably moral. But I fear that as we focus on achieving just that, we blinid ourselves to potentially larger issues regarding globalization that continue throw more and more onto those lower rungs.

Has anyone heard from Google co-founder Sergey Brin since co-founder Larry Page staged his bloodless coup and re-took control of the company?

Is he alive?

Still working at Google?

Even on earnings calls, Brin does not speak nor is his name ever mentioned.

I ask not because I'm concerned, which I am, but because we were told that it was Brin who was leading the good fight against the not-good anti-freedom government of China.

Because of the government's restrictions on the Internet, on freedom, on Google, on Google results -- and their obvious attempts to (repeatedly) hack into Google, the company proudly and boldly proclaimed they were exiting China.

Upon which I called bullshit.

Many, many times.

Nearly a year ago -- before Page took over -- I wrote:

Google won't abandon the world's most populous market, the planet's second largest economy. I think we all know that if we want smartphones, at least iPhones or Androids, that we pretty much have to take product from China. 

Only a few months ago I confidently stated, in that way of mine:

I have told you many times that Google's business model is *predicated* on its continued control, ownership and tollway management of the global Internet. In all its forms. This is why no amount of money is too much to spend taking out Apple and Microsoft -- which have consumed a *minimum* of $20 billion by my count, with almost zero return. The return is less important, it's limiting and possibly destroying Microsoft and Apple that is of utmost importance to Google. Likewise, no matter what it takes, Google will spend it to ensure Facebook cannot survive, and that Twitter cannot make a buck. Nor Yelp, nor Groupon, nor anyone else that *might* get between you and data/content/information that Google could place a Google Ad next to.

But what of China?

Despite what Google has told you about not donig business in China because of restrictions, know that it's bullshit. One of the *primary* reasons for buying Motorola was to use it to get back into China. Same with the purchase of Android. 

But wait. Wasn't Brin the good guy? The one prepared to sacrifice potential China mainland profits because of the very principals Google was founded upon? Wasn't there something about his parents and communist Russia, we were told?

All bullshit, dear readers. All bullshit.

And the company you and I reliy upon to provide us unbiased access to information is more than happy to to do otherwise. 

Which really ought to tell you all you need to know about them.

From Google's head of Asia Pacific operations, only yesterday:

“We never left China, and we continue to believe in the market,” Alegre said. “It’s a very vibrant Internet market. We have some of the best employees at Google and we continue to grow not only our revenue but also our headcount in the country.”

Google never left China?

China has a "very vibrant Internet market"?

Google "continues to grow" their China presence?

Are those directly verifiable lies? Or is everything you previously heard from Google so?

I am not naive. I know that there's a billion Internet users in China. I know that Android is thriving in China -- with various flavors that seek to lock out Google. I know that at the end of last week Google missed earnings estimates and bright and early Monday morning (in China) they got on the phone with Bloomberg to reassure Big Investor that Google truly is -- still -- a growth story.

I just want Google to stop being pussies, to stop deceiving me, to stop telling me one thing while doing another. I want to be able to trust Google and trust Google's results -- about anything.

As much as Eric Schmidt was a tad creepy, at least you knew where you stod. Under Larry Page, I can't trust Google about anything they say or do.

Do not expect this to change. Page is determined to make sure that no crevice of the global Internet is out of Google's reach and that no where you go on the web, nothing you ask, nothing you seek, is available without Google extracting its toll.

The web is growing and morphing. Page is determined to grow and morph Google to remain in lockstep with the web. Fair enough. But what you thought Google was and what you thought Google stood for and what you thought Google offered is now gone, forever.

You should at least be aware of this.

Nearly two years ago, Google co-founder Sergey Brin was asked about China:

Mr. Brin lived in the Soviet Union until he was nearly 6 years old, and he said the experience of living under a totalitarian system that censored political speech influenced his thinking — and Google’s policy. “It has definitely shaped my views, and some of my company’s views,” he said.

I believe Brin was telling the truth. I just don't believe that Page, Andy Rubin and the others actually running Google give a shit. A compromised (wired and wireless) web, where Google can insert itself between you and the data/content/resources you seek is more important than a free and open web where Google may not be dominant.

This is what giant, for-profit corporations do.

Is Android bad for Google? China firewall edition.

Regular readers know that Google annoys the hell out of me. Mostly because they have jiggered the Internet such that there's almost nowhere I can go, nothing I can do, without their knowledge and involvement.

Oh, and I can't recall *a single fucking non-duplicitous statement* that one of their top people has made when speaking to the public.

I'd rather you say nothing than bullshit me, Google.

One of the more shit-filled statements from Google was their taking-the-high-ground "leaving China" statement over censorship and theft. But, based on history, I wrote months ago:

Despite what Google has told you about not donig business in China because of restrictions, know that it's bullshit. One of the *primary* reasons for buying Motorola was to use it to get back into China. Same with the purchase of Android. 

Can't have a billion fucking people on the Internet *not* using Google now, can we?

I'm a pistol, aren't I?

Today, MIC Gadget examines all the many way that Google is "stepping up" its efforts in China:

Google has reignited its effort to expand in the world’s largest internet market. The company is stepping up its pace in China by providing new services and hiring more engineers, sales personnel and product managers in the country. The goal is to boost the development of its Android operating system for mobile devices, online advertising and product search services in this booming region, where the number of internet users had just passed 500 million …

About 60% of smartphones in China use the Android system, and budget Android tablet will rise this year. Google views this as its most profitable business product in the world’s second-largest economy. The barrier which Google is facing now might be their online app store. It still remains accessible in China but Google is not getting benefit of it. Android phones shipped officially in China have application stores from handset makers or third parties pre-installed instead of Google’s official Android market, and this might affect Google’s online advertising.

Come now. Give Brian some sugar!

I can certainly understand why a giant public company is ramping up its business in China. I just wish Google and all the smart people it employed believed each of us were smart enough to *not be lied to every fucking day about every fucking issue*. 

Only, in this case, and despite the fact that Larry Page has effectively exiled Sergey to Google Siberia, I don't think it's simply another example of Google faux grandstanding over fre and open and standards and neutrality.

Rather, I think it's another example of how Android appears to be causing Google to betray every one of its values. Net neutrality. Open. Anti-censorship. All content is equal.

Where hasn't Android caused Google to betray itself?

And speaking of betrayal, what are the leaders of the web doing about China's firewall? Wikipedia, Reddit, Google et al tut-tutted SOPA, quite publicly. What is their stand on China's control of web information and access? Are they doing anything to change this?

China's netizens' base reached a little more than 500 million in November, last year, Gao Xinmin, the vice chairman of the Internet Society of China said at Internet Industry Annual Conference 2011 held in Beijing.

China has 340 mobile phone netizens, accounting for about 65.5 per cent of the total Chinese netizen population, Gao said. China has nearly a billion mobile phone users fetching a revenue of about USD 90 billion.

Weibo, the Chinese version of Twitter, saw its members exceed 300 million by the end of last year. That's a figure that exceeds the entire population of many countries, state-run CCTV said in its report. Weibo has nearly doubled in size within a period of six months last year, with 132 million new members registered. It counts over 10 thousand government organisations as its members too.

So much so it has emerged as an alternative media challenging the might of the official media. The government has already initiated measures to crackdown on its users. New rules stipulate that all users should register with their real identity.

Interesting, is it not, that Google's latest big push, Google+, and China, both require "real identities"? 

Why are the big, powerful, profitable giants not *publicly* speaking out against a controlled and constrained China Internet?

Apple not the only company hoping to make ungodly amounts of money in China

GE has a series of pretty badass animated shorts that reveal the full and true power and glory that is China.

Should they buy lots and lots of big, costly GE materials.

All of China gets in line for iPhone 4S (Video)

Video from MIC Gadget:

Philip Elmer-DeWitt also covers the story:

Penn Olson's Steven Millward reports from Shanghai that crowds several city blocks long have formed outside Apple's (AAPL) stores in Beijing and Shanghai hours before the scheduled release of the iPhone 4S Friday morning.

Although China Unicom (CHU) will begin selling the device for heavily subsidized prices at midnight -- eight hours earlier -- most Chinese buyers seem to be congregating at Apple's own stores, perhaps to get the unlocked versions that only Apple sells.

It could be long, cold night. According to Millward, temperatures are supposed to drop to 3°C (37°F) overnight in Shanghai and even lower in Beijing.

In China Brian S Hall means man with very large penis

And it didn't take no linguist to figure that one out!

But I digresss.

A brief, fun post from MIC Gadget on effectively translating your brand name in China:

Global companies really need to take care on choosing their brand names for the Chinese market. Because some mistranslation can became a joke and affects their marketing.

In Chinese, Microsoft’s Bing search engine translates literally as defect, virus and disease. No wonder it was rebranded ‘Bi Ying’, which means ‘Responds without Fail’. Some phonetic translations work better than the original. The Chinese characters for Coca-Cola, pronounced as ‘Ke kou ke le’, means tasty and fun.

With China’s market for consumer goods soaring companies rely on linguists in a bid to avoid embarrassment. Here are some of the translated and rebranded products on China’s shelves, check them out after the break.

coca cola china

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