US-China trade deal set to reduce manufacturing costs for Apple, aims to cut prices for consumers

President Obama and President Xi Jinping in Beijing (photo: Agence France-Presse/Getty Images)

President Obama and President Xi Jinping in Beijing (photo: Agence France-Presse/Getty Images)

A trade agreement reached between the U.S. and China looks set to reduce Apple’s manufacturing costs by removing import tariffs on components imported into the country.

Apple uses components from a number of countries around the world, notably Korea and Japan, which are imported into China for the assembly of iPhones, iPads and Macs. China currently imposes import tariffs on these components. The new deal would allow companies like Apple, Microsoft and HP to bring components into China free from these charges …  Read more

Apple plans Apple University in China, bringing Jobs’ vision to Asia

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Tim Cook speaking at a conference in China

Apple is seeking to cement its business position in China for the long-term with an expansion of its Cupertino-based Apple University program to the region, according to a person with knowledge of the plans. Apple Vice President and Dean of Apple University Joel Podolny is currently interviewing candidates for a new Dean of Apple University position for China, according to the source.

Started in 2008, Apple University is an extensive and growing program within corporate Apple that trains mid-level employees and managers on the decisions made by Steve Jobs and other key executives throughout the company’s resurgence. Jobs created the program alongside former Yale School of Business Dean Podolny in order to keep the culture of Apple alive well beyond the lifetime of executives key to Apple’s early success.

The expansion of Apple University to China will mark a key step in Apple’s history as a global company. It will be the first time Apple has fully expanded the exclusive program to another region, indicating that it wants to extend its presence in China beyond mostly just sales and operations, like it has done in the United States. Apple has previously offered a minimal amount of courses in other regions and has flown-in professors. With many Apple suppliers headquartered in China, it is likely that a notable portion of the Apple University classes in China will be geared toward product engineering and manufacturing matters…

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Apple to grow retail stores in China from 15 to 40 within two years, says Cook

shanghai-apple-store

Tim Cook noted during Monday’s earnings call that Apple was “investing like crazy” in China, but he took the opportunity of his current visit to the country to put a specific number on the company’s retail expansion plans: it will open 25 new Apple Stores in Greater China within the next two years. Greater China includes both Hong Kong and Taiwan.

Speaking to local media, Cook also said that China would in time become Apple’s biggest market, reports the WSJ …  Read more

Tim Cook meets with Chinese vice premier in Beijing following iCloud phishing attack

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Two days after evidence emerged of a phishing attack on iCloud, allegedly due to the Chinese government firewall redirecting traffic to a fake login page, the Chinese state news agency Xinhuanet is reporting a meeting in Beijing between Tim Cook and Chinese vice premier Ma Kai.

Chinese Vice Premier Ma Kai and Apple Inc. CEO Tim Cook on Wednesday exchanged views on protection of users’ information during their meeting in Zhongnanhai, the central authority’s seat. They also exchanged views on strengthening cooperation in information and communication fields.

The Chinese government censors access to the Internet by deploying a country-wide firewall which blocks certain sites and which can redirect traffic from sites the government dislikes to officially-sanctioned ones …
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Major Chinese business paper claims iPhone 6 won’t go on sale in China this year – reliability unclear

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Bloomberg is quoting a report from the major Chinese business paper 21st Century Business Herald that the iPhone 6 may not go on sale in China this year due to regulatory delays. Apple was unable to confirm a launch date in the country.

Apple may have to wait until next year to get approval for new iPhones in China after failing to reach agreement with the Ministry of Industry and Information Technology this month, the 21st Century Business Herald reported today, citing an unidentified person close to Apple.

Carolyn Wu, a Beijing-based spokeswoman for Apple, said she couldn’t provide a date for the China release. “China is a key market for us and we will get here as soon as possible,” Wu said in an e-mail today …

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China Mobile sold over 1M iPhones last month, chairman non-committal about the numbers

A man holds a new Apple iPhone 5S next to his iPhone 5 at an Apple Store at Tokyo's Ginza shopping district

Photo: readwrite.com

China Mobile announced that it sold 1.34M 4G handsets in February and that “most of them” were iPhones. China Mobile chairman Xi Guohua was relatively non-committal on the numbers.

It’s just been getting started for one or two months. So far it’s hard to tell how that will affect our business [...]

We are happy with the progress as we are still building our 4G network and the coverage is only available in some major cities.

Analyst estimates of likely sales had varied widely. Most had predicted at least 15-17M sales a year in China as a whole, however, suggesting that 1M in a month on what is by far the country’s largest carrier may be somewhat lower than anticipated …  Read more

Apple retail chief John Browett previews third retail store in Beijing ahead of weekend opening

We told you a couple weeks back that Apple plans to open its third retail store in Beijing on Oct. 20. The new Wangfujing Street store will open at 9 a.m., but Apple’s Senior Vice President of Retail John Browett today gave press in Beijing a preview of the three-story location that happens to be Apple’s biggest retail store in Asia. Browett also confirmed Apple will open another store in Shenzhen.

Below, we get some shots of the new store’s 360-degree Genius Bars, three-story glass staircase, and more (courtesy of M.I.C Gadget): Read more

Beijing’s third Apple Store now official, opening Saturday

Apple will occupy the bottom of this building

Apple’s retail store expansion continues in China, as the company confirmed this evening that its third Apple Store in Beijing, China is opening Oct. 20. The Cupertino, Calif.-based company confirmed the news on its website, letting customers know the Wangfuijing store’s doors will open at 10 a.m. IfoAppleStore described the location:

Wangfujing Street, a mile-long, pedestrian-only collection of over 200 shops that include Chinese and international brands. The street’s retail history dates back to 1200, and it is now a major destination for locals and tourists. The existing Xidan Joy City Apple store is about a mile west of Tianman Square, while the Wangfujing location will be east of the square. The country’s first Apple store at Sanlitun is about 3½ miles northeast.

China has proved to be a big growth market for Apple. The company has positioned itself aggressively there with additional retail openings. Most recently, Hong Kong’s second Apple Store opened in Kowloon Tong in the Festival Walk shopping center in September. In the summer, we also reported another store is rumored for Hysan Place in Causeway Bay.

Apple CEO Tim Cook reiterated China’s importance several times on company earnings calls. Apple will also open a massive data center in Hong Kong, breaking ground in Q1 2013, our sources told us. Read more

Tim Cook meets with Vice Premier of China Li Keqiang, Proview claims “political public relations campaign”

We knew earlier this week that Tim Cook had “great meetings with Chinese officials” during his first trip to China as chief executive officer of Apple, but today a report from Bloomberg gives us new details about exactly who he met in China. According to the report, Cook met Chinese Vice Premier Li Keqiang, who could replace Wen Jiabao as Premier of the country’s government in 2013. Cook also met with Beijing Mayor Guo Jinlong a day before. Apple spokesperson Carolyn Wu told Bloomberg that Li and Cook had a “great meeting,” but she declined to talk about the specifics.

However, a report from The Wall Street Journal cited local media reports and claimed Cook and Li were discussing “intellectual-property issues and greater cooperation.”

According to representatives for the creditors of Shenzhen-based Proview, the company Apple is in a dispute with over the iPad trademark, Cook is on a “political public relations campaign” regarding the legal disputes. Li Su, president of Hejun Vanguard Group who represents Proview’s creditors, made the remarks. When Apple’s spokesperson Carolyn Wu asked about Li’s comment, she said the following:

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Apple brings 25 billionth app download winner to Beijing to give her this $10,000 iTunes gift card

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Earlier this month, we told you Apple awarded a $10,000 iTunes Gift Card to Chunli Fu of Qingdao, China for downloading the 25 billionth app from the App Store. As part of her prize, Apple flew Fu to Apple headquarters in Beijing for a visit to the corporate offices and then the Sanlitun retail store to collect her prize at a press event and award ceremony. Several local reports from qdqss.cn and elsewhere were summed up in a story over on MIC Gadget.

According to the report, Fu was an iPhone user for only a month before being contacted by Apple about the contest:

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Chinese Authorities in Shijiazhuang snatch iPads from retailer over ‘iPad’ name trademark dispute

The Economic Times of India, Penn Olson, Ifeng.com, DigiCha and China.com.cn are all reporting that Chinese authorities in Shijiazhuang are confiscating iPads because of an ongoing Proview trademark litigation. Proview, you will recall, is suing Apple over its I-PAD trademark and hopes to receive up to $1.5 billion for the name.

As Penn Olson pointed out, the confiscations are in one city and so far just on third-party retailers. However, the action forced other retailers to take iPads off the shelves, though they can still be purchased if asked for. However, this latest action might be a sign of things to come…

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