Threat of Substitute Products

Threat of Substitute Products:

For alternatives, Apple has to face the impact of them. In the most advanced technology, Apple has a great advantage. However, if alternatives can provide a higher value than the existing product, it will pose a threat to existing products. For example, in the hardware side, Lenovo, Dell and other companies are making the computer thinner and lighter, like Lenovo LePad.

2.3 Competitors

Currently, China is the largest mobile phone market in the world, second-largest PC market, and the third-largest consumer electronics market. Apple is selling in multiple product lines, such as notebook, MP3 and mobile phone, which lead Apple to face competitors more than other companies at the same time.

Sony

The Sony Corp Walkman Introduced music into the people’s life, from tape to CD, thus, it can be said that Sony led the twentieth Century revolution of audio player. Until 2001 October, the emergence of iPod in Apple Inc has changed Sony’s years of brilliant.

Samsung

In the process of chasing Apple, Samsung has been keeping up with. So far, Apple mobile phone, iPhone 4, is the most revolutionary. But the Samsung I9000 mobile phone was more used to compare with iPhone4 after becoming Android system’s flagship. And after Apple released the iPhone 4S, Google and Samsung expect jointly release the new version of Android operating system, Ice Cream Sandwich mobile phone.

In summary, Apple in China has a strong competitive edge and other competitors can not match in many ways, but there are high barriers erected by the price and other aspects. Apple must correctly estimate situation and give greater freedom to the Chinese market operators, to obtain a breakthrough in the channel construction, so that word-of-mouth marketing can be truly realized.