“What do Venezuela and the tiny island nation of Saint Maarten have that China doesn’t? Starting on Friday, the answer will be the latest iPad, as Apple (Nasdaq: AAPL) has just released the latest list of countries where its newest must-have product will go on sale, and China is noticeably absent,” Doug Young writes for Forbes.
“Many observers might say that Apple is taking a cautious approach to China pending the resolution of a trademark dispute with a near-bankrupt company over the iPad name,” Young writes. “But in my view, the exclusion of China from the list is just as much about applying pressure on Beijing for a court ruling in its favor, and says more broadly that Apple could withhold its popular products in the future if it doesn’t believe it is being treated fairly in the market.”
Young writes, “After all, withholding Apple products could easily anger many Chinese consumers eager to have the latest hot device, perhaps prompting them to hold Beijing responsible. Furthermore, the absence of legally imported iPads will fuel a surge in smuggled products, costing China millions of dollars in lost import duties.”
Read more in the full article here.
Apple CEO Tim Cook meets with Vice Premier of China; Proview says ‘political public relations campaign’ – March 28, 2012
Apple: Proview is lying about iPad trademark in China to stave off creditors – March 22, 2012
Major creditor seeks liquidation of Chinese iPad trademark challenger Proview – March 5, 2012
Proview lawyer hopes Apple makes contact for iPad trademark settlement – March 1, 2012
China higher court hears Apple’s iPad trademark appeal – February 29, 2012
Apple iPad trademark case in Shanghai suspended; Proview injunction rejected – February 24, 2012
Proview sues Apple in the US, mass hilarity ensues – February 24, 2012
Proview files lawsuit in California against Apple over iPad trademark – February 24, 2012
Chinese court says Apple can continue selling iPads in Shanghai – February 23, 2012
If they are made in China, why would there be an important duty?
Probably because Foxconn factories and all factories that manufacture goods for foreign companies and the supply chain is located in a huge foreign trade zone. Goods leaving that trade zone for sale into the mainland is subject to import duties. Samee thing with the malquidores in Mexico
Wow talk about a scam.
Why is that a scam? I’m sure they are given other perks being in the foreign area that purely domestic companies aren’t. They set the rules for the businesses that operate.
Same with distilleries in Scotland. The whiskey is taxed according to which country it is being “exported” too. That is normal behaviour and prevents double taxation, e.g. being taxed in Scotland, then being taxed again on import in the destination country.
That’s interesting information. Thanks, Bob.
Bob is 100% right about the foreign trade zones. They are strictly guarded and goods leaving there are heavily taxed if for sale inside China.
Interesting that he thinks that Chinese “consumers” have any weight in China and will lobby the Chinese government to support Apple’s position. This has worked well for Chinese citizens in the past, hasn’t
Putting an iPad in front of an oncoming tank in ‘The Square’ is a lot more effective than waving your arms defiantly.
I had that image when I was penning the above. However, I thought it a tad dark 🙂 I’m pleased you didn’t.
Oh yeah, I’m going to forego billions in revenue and profits in the world’s largest, fastest growing market, because I’m having a minor legal problem in China.
It’s rather interesting to hear Apple may or may not play hardball and better than the US government.
I am in transit back from two weeks in Shanghai, sitting here in O’Hare waiting for my delayed connection.
I don’t think Apple is playing hardball. In my two weeks, Noone asked to buy my iPad 2 w/ 3G.
Yes there are tons of iPhones, but not yet alot of iPads, though it’s hard to tell as the use scenario is different. I did see a Chinese woman hold her iPad 2 up at the F1 race to take photos!!!
Also the Apple Genius in Shanghai called my nephew’s iPod touch, an itouch! I almost corrected him.
Perhaps no-one offered to buy your iPad because it’s an older model, KenC.
I was in Shanghai in late March & colleagues were definitely interested in the new iPad. My colleague brought 2 brand-new new iPads up & there was a backlog of orders from our other Chinese colleague.
I attended a concert around the time of lunar New Year at the National Center for Performing Arts in Beijing. At the end of the festivities there was a raffle, with the first prize being. . . an iPad 2. The high school student who got the second-place prize was openly sobbing at losing out. May be not representative, but I’ve seen iPad on every domestic flight I’ve taken in China, usually multiple passengers.
Many observers might say that Apple is taking a cautious approach to China pending the resolution of a trademark dispute with a near-bankrupt company over the iPad name
There is NO dispute over the iPad name. It was resolved in the Hong Kong court last June. Everything since then has been nothing but the whimpering cries of a dying company that is desperate for money and will pull all the criminal strings China: Criminal Nation, has to offer. Just laugh.