Apple (NASDAQ: AAPL) have a big problem, it needs more customers. Chinese customers. Easy? Not so fast, the media is controlled by the Chinese government as the villain for the iPhone and iPad manufacturer.
Apple's problem
Apple's high-tech gadgets have revolutionized the market, from mobile phones to computers. However, the company likes to control every aspect of their products, from the design to the operating system. This makes the company's future depends on two things: the ability to continuously create the ideal products and more and more people find that it can sell its products.
Whether these things can lead to continued top and bottom line growth. However, to create revolutionary products continue to flow, is a daunting task. Therefore, finding new customers is an easy walk. For example, Apple is seeking to establish lower prices to attract customers unable or unwilling, pulled out a great price to high-end equipment.
Its leaders have also take the time to win over China to get a better foothold in this market. The reason is obvious, a lot of people in economic development. However, to date, have not had as much success as possible, because it wanted to.
China calls
Unfortunately, Apple, China Central Television, the government-owned radio, recently accused treat customers in China is different from the treatment of customers in other countries. It looks like a goodwill tour, Apple CEO Tim Cook (Tim Cook) will not be too long, not so good. This also means that China may not be so passionate about Apple and its products.
In China's largest mobile phone China Mobile (NYSE: CHL). This cell has about 600 million customers, Apple would like to get. Which controls almost two-thirds of the domestic mobile phone market. The only problem is, the Chinese government effectively controls the China Mobile.
This is the main reason the company decided to use a non-industry-standard technology, its network. This choice leads to a relatively slow smartphone rate and backward data usage. With the government against Apple in the media, this is not a far-fetched expected, China Mobile transactions will be complicated, at best. Apple's growth prospects, which may be a big hit.
Apple has apologized.
Other Click
There is a big problem is the media attacks? Beautiful, if you think that reaction similar media bashing last year, McDonald's (NYSE: MCD). This huge restaurant chain has about 5,000 McDonald's franchises, expansion plans in the country.
The company was accused of selling substandard food, the television stations controlled by the Chinese. McDonald's forced to make a public apology to help contain the damage. A year later, when the annual plan, stressed that the company is once again set to null, McDonald's decided to hold a free food gifts.
While the company called it a coincidence, it is certainly not like it. Food gifts, of course, is the quality of the chicken, sales fell to fight the shadow of precipitation reaction! The brand KFC chain, its influence is felt in the Pizza Hut and McDonald's.
The scandal is started by the Chinese media report. Interestingly, YUM! Been accused of any errors, but the damage to the public, resulting in a big top and bottom line hit. The same time, free McDonald's food may make this double whammy, but to give up food is not a cheap proposition.
Bargaining tactics
It is also possible to think that the Chinese government on the defensive Apple bargaining trick. Weakened Apple, regardless of the customer's needs may be more than would otherwise be willing to countries or companies. And, of course, to some extent, Apple is bad, but at least allow it to enter the Chinese market.
Apple at the crossroads
Apple's stock price has dropped significantly since the end of last year, the market seems to have realized, this tree can not grow to the sky. If, to deny or restrict access to the country's emerging wealth, its top-line growth of China's long-term problems.
Conservative investors should stay on the sidelines until Apple's future is not the same hazy. More active type, however, may want to consider, if they believe that Apple will be able to prevail, despite the headwind.
 



Other News:
Apple Needs China; Chinese Government Doesn't Care
Former French budget minister admitted tax evasion Hollande was criticized as ga
US futures edge higher on strong earns start
Senate immigration plan creates complex road to citizenship
Merkel tells Putin to give NGOs a chance
Facebook tweaks Android phones to build new 'Home'
Samsung's operating profit up 53 percent in 1Q
Greece's NBG-Eurobank merger suspended, official says