Reuters is reporting that Apple's retail store presence in China is no match for its population. With a population of 1.3 billion people hungry for the company's products, six retail stores pretty much guarantee long lines, scalpers and frustrated customers.
Back in 2010, then head of Apple retail Ron Johnson predicted the company would have 25 stores in China by 2012 -- a goal that is clearly no longer realistic.
"There's certainly more demand than Apple can serve with their store footprint currently," explains Torsten Stocker, a partner at the Monitor Group.
With two Apple Stores in Beijing, three in Shanghai and another in Hong Kong, Cupertino's retail footprint pales in comparison to the U.S. state of Pennsylvania, which has eight stores -- three of which are located in Pittsburgh alone -- serving a population of 12.7 million.
Now that Apple has settled its trademark dispute with Proview, the situation is expected to get even worse when the company's third-generation iPad is finally introduced in China.
However, the slow pace of growth at retail may not be entirely Apple's fault.
"There are complications around opening stores in China that you don't get in Western countries," said Andrew Milroy, the Singapore-based vice president of ICT Research who cites "red tape" as a key roadblock for foreign companies looking to expand in China.
Follow this article’s author, J.R. Bookwalter on Twitter
(Image courtesy of MacRumors and WeiPhone.com)
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