So Shanghai is conquered, not necessarily all of China.
The rest would be conquered too if there were stores. Not long ago they closed down a bogus apple store which was so real not even some of the people working there had a clue it was fake. The only difference to a real store was that the staircase wasn't made out of glass (although they covered it now in the Pudong store). The rest of the experience was copied 1:1, products were real too. Why open up a fake Apple store? Because there's INSANE demand!
There's a huge demand on Apple stores and products here and it drives an entire black market of people buying Apple products en-masse in Beijing, Shanghai and HK to import them into the mainland and distribute them to areas where no official and no licensed stores exist.Add to that the fact that new products are always available much later in mainland China.
After the iPhone became available here it was sold out within 2 hours everywhere. And with the 4S you had to wait for 2 months after the China release to actually be able to walk to a store and buy one. It was sold out completely. Not even in HK you could get one. People were mass buying them, and people hired other people to buy phones for them after Apple put a limit on how many one could buy.
Since this didn't help they made it more difficult and limited the purchase to credit card payment only so people couldn't just hire a migrant worker, give them money and tell them "buy all the iPhones you can get". When that failed to work you had to make an appointment to actually buy one!
At the HK border crossing you'd see people carrying so many iPads, the Chinese customs themselves had to limit the amount people could import! (I guess Apple intervened here).
There's not much for apple to do other than open more stores and make some cheaper versions of some of their flagships - i guess that's why they still offer the 3GS here.
Yet you see people with iPhone 4 and 4S who don't look like they can't afford them. But they're the real thing. If you can't afford a car or apartment, an iPhone is the best status symbol you can get here. And people are prepared to save lots of money from their small salaries to buy them.
It's really an Apple craze here. Don't believe me? Go to China, put an iPhone on the middle of the table and watch people stare at it
