This Day On The Street
Continue to site
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

Apple's Competitive Strategy in China

NEW YORK ( TheStreet) -- Every successful company is guided by a vision. Sometimes that vision becomes obscured or cluttered but the successful company maintains crystal clarity. Steve Jobs articulated his vision perfectly in the 'Think Different' campaign - it resonated with people and with a single phrase from the video 'Here's to the Crazy Ones' he captured the pinnacle of the vision, when he said, referring to our leaders; "They push the human race forward."

This was Steve's vision - to push the human race forward by breaking down walls, by not constraining ourselves to conventional thinking and wisdom, to remove our fears and carapaces. To see the world for what it is, and go with it.

Little known fact - that was Steve's only contribution to the video.

Steve believed that the leaders among us are not constrained by self-imposed walls, which most of us build to feel safe. Leaders don't spend their lives constrained by rules, revel in their smartness, or by making things a big show. This is just a facade, a safe place from within which most people live, that keeps them from moving forward.

Today, Apple (AAPL - Get Report) has lost some clarity of that vision. And as a result, it is being systematically marginalized by the Chinese government and state controlled media, because they have fear, they need a wall to feel safe. Companies like Apple, Google (GOOG - Get Report) and Samsung are dominating Chinese markets and not allowing them to develop their own intellectual property, which they view as their ticket to independence.

The harder we try to penetrate China markets, the greater they will push back, in all manner and form. China is the second-largest world market, and they don't want to be sold to, they want to be part of. The first company to break down their own walls of competitiveness and help China realize their vision of independence will win.

So, what form does this take? Does Apple sell the rights to its technology? Become partners with the Chinese? Split up the product lines? Share in the manufacturing? I really don't know. But I do know that it's something like this, or eventually it will be nothing at all.

-- Written by Ernie Varitimos, author of the Apple Investor blog.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.
Ernie Varitimos has a long history with Apple as an investor, trader and consumer of its technology. He started his career as a rocket scientist and has spent the past 25 years driving, controlling and influencing technology in the financial industry. Ernie is a former hedge fund manager and current futures trader.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 0.00%
GOOG $695.70 0.00%
FB $118.06 0.00%
TSLA $222.56 0.00%
YHOO $36.00 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs