This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Apple Needs to Step on the Gas in China: Opinion

Johnson's departure from the company, and the recent firing of his replacement, may have something to do with it. But Apple is a well-oiled machine and once it commits to a goal, it typically delivers on it.

With all the financial success in China over this period, it's surprising that Apple wouldn't have fulfilled on its ambitious goal.

Many other Western companies are going full steam ahead into China. Burberry (BURBY) had 57 stores in China at the start of 2012 and opened 23 stores on the mainland last year. Then again, Burberry's stock tanked in September last year on a surprising profit warning (although it's made back most of those losses in the warning's aftermath).

I have heard people speculate Apple can't acquire the right locations in China and the right prices in order to proceed. Apple certainly has high standards but I don't think such an exercise with Apple's offshore cash resources would be that difficult.

The answer for Apple's retail presence reticence in China remains unclear.

Meanwhile, in the past two years, Android's software has flourished in China. It has been well-advanced by Samsung, of course, in China. The Note and Galaxy are especially popular among Chinese elites and mainstream. But Android has also been seized upon by all the Chinese handset makers like ZTE and Huawei. Even Alibaba Group and Baidu (BIDU) have built mobile software on top of Android.

Google doesn't really benefit from this Chinese growth of Android. It gets nothing from the handset makers and Google doesn't even get the mobile information sent back to them. Baidu is used by most for search. Local mapping partners handle Chinese maps. Google doesn't even get geolocation data.

But the fact that Google doesn't benefit from Android's growth in China doesn't make it any better for Apple. Apple is still playing catch-up now in China, where it was seen as being more in a position of strength only earlier in 2012.

No doubt this is partially behind Tuesday's report that Apple is working on a cheaper iPhone for release later this year. Apple likely realizes that it must be able to grab a meaningful share of this exploding mobile market in China and other emerging markets. A $650 device will only take you so far in those markets.

Stock quotes in this article: AAPL, CHU, CHL, GOOG, FB, BURBY, BIDU 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs