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Lenovo: Apple losing out in China

Posted by admin On Temmuz - 6 - 2010

The chairman of PC maker Lenovo says Apple is missing a tremendous opportunity in China and places the blame squarely on Apple CEO Steve Jobs.

“We are lucky that Steve Jobs has such a bad temper and doesn’t care about China,” Liu Chuanzhi told the Financial Times. “If Apple were to spend the same effort on the Chinese consumer as we do, we would be in trouble.”

iPhone sales in China have been restrained since the phone debuted there last October. China Unicom announced in December that it had sold 100,000 iPhones, a modest figure considering China Unicom’s 144 million total subscribers.

Sales are limited because China Unicom is currently the only carrier authorized to offer the iPhone for sale, although Apple has conducted on-again, off-again talks with China Mobile. The phone sells for $730 to $1,020, according to published reports, much higher than gray market smartphones and iPhone knockoffs.

The phone also lacks Wi-Fi. Chinese regulations had prohibited the sale of any Wi-Fi device that does not use the country’s own wireless standard known as WAPI (Wired Authentication and Privacy Infrastructure). As a result, Apple introduced the iPhone with Wi-Fi disabled in order to enter the Chinese market without delays. However, due to a relaxation of rules, devices sold in China can offer Wi-Fi as long as they also include WAPI.

Lenovo recently began shipping its new LePhone smartphone in China, its first venture into the smartphone arena. Liu said the phone was well-positioned to compete with the iPhone because it was customized for users in China.

“This is a very practical thing,” Liu said. “The iPhone has more than 100,000 content providers, and we have no more than 1,000 But our Chinese customers feel our applications are very convenient to use.”

Apple representatives did not immediately respond to requests for comment.

The Hong Kong-based company recently returned to profitability, recording a fourth-quarter net profit of $13 million versus last year’s fourth-quarter loss of $264 million.

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