Lenovo CEO on Steve Jobs and Apple's Efforts in China

[MacRumors]

July 10th grand opening of Shanghai Apple store
The Financial Times offers an interesting piece highlighting the views of Lenovo CEO Liu Chuanzhi on Steve Jobs and Apple's efforts to penetrate the rapidly-growing Chinese market where Lenovo leads in PC sales with 30% of the market. In particular, Liu notes that Lenovo is lucky that Apple "doesn't care about China" or else it could see itself being "in trouble".

Speaking of Apple's chief executive, Lenovo's founder and chairman, told the Financial Times: "We are lucky that Steve Jobs has such a bad temper and doesn't care about China. If Apple were to spend the same effort on the Chinese consumer as we do, we would be in trouble."

Evidence is mounting, however, that Apple may be beginning to take the Chinese market more seriously, with the company announcing earlier this year that it plans to open up to 25 Apple retail stores in the country within the next two years. In fact, the company is planning a grand opening this weekend for its first store in Shanghai, the company's second store in the country following the Beijing store opened in time for the 2008 Summer Olympics there.

As Silicon Alley Insider points out as well, Apple executives noted during the company's most recent earnings conference call that revenue from "greater China" including Hong Kong and Taiwan totaled $1.3 billion for the first six months of fiscal year 2010, up over 200% year-over-year.

Article Link: Lenovo CEO on Steve Jobs and Apple's Efforts in China

 

[czachorski]

All these accusations that Jobs manages out of his temper, jealously and spite I find to be ridiculous.

 

[davebarnes]

Strange FT article

The FT article appeared to be 1/2 an article. That is, it seemed weirdly incomplete.
Not up to FT standards at all. More like an article in my local newspaper.

 

[sbrownla]

All these accusations that Jobs manages out of his temper, jealously and spite I find to be ridiculous.

What? What are you trying to say?

Anyway, he definitely cares about China. A massive untapped market where Apple can pay suppliers dirt cheap amounts to pollute their surroundings, NIMBY style?

I just don't think the consumer market is worth a massive investment because people in general can't really afford Apple prices there, can't here either while we're at it, and those who can aren't really such a giant market segment that there's any reason to rush. Maybe I'm missing something.

 

[sjo]

Opening stores won't take them very far. You have to understand the Chinese customer to succeed in China, starting from the product design. Understanding other markets than the US has never been Apple's strengths. Many US companies don't even think they need to know the local customers. I think that's what the Lenovo CEO was referring to.

 

[mBox]

Hmmm yes they will get the most recent updated computers...Im being sarcastic of course

 

[cohibadad]

When Apple starts making products faster than they can sell them they will work harder at understanding untapped markets.

 

[aarond12]

Lenovo

Go ahead, Lenovo, and say dismissive statements about Apple. Nintendo did the same thing several months ago, quickly followed up by another statement that Apple is their new competition.

Lenovo needs to concentrate on what they're doing well in China and Asia: Business sales. They don't need to be competing with Apple at this point. Like in the US, many businesses aren't ready to move to Apple computers (for reasons mostly of Fear, Uncertainty, and Doubt [FUD]).

Remember that Lenovo is a relatively young company -- they were formed by purchasing IBM's personal computer business. They've only been around for ~10 years.

-Aaron-

 

[franswa za]

china, japan? rest of eastern asia?

i personally believe that apple and certainly steve jobs ARE even as we speak busy with an iphone4 for the very large asian market (esp china, japan) which, when penetrated, will make the US market seem very small........ watch out lenovo et al! steve job's alleged short temper or not........

(maybe the hiring extra rf/antenna engineers is part of this strategy)

the only limiting factor would be the fairly hefty price that an iphone4 would carry in those markets, although there certainly are many affluent people out there

apple should quickly? sort out the current antenna hardware problem, however

 

[zxcvb]

What? What are you trying to say?

Anyway, he definitely cares about China. A massive untapped market where Apple can pay suppliers dirt cheap amounts to pollute their surroundings, NIMBY style?

I just don't think the consumer market is worth a massive investment because people in general can't really afford Apple prices there, can't here either while we're at it, and those who can aren't really such a giant market segment that there's any reason to rush. Maybe I'm missing something.

even though the percentage of people who can afford apple there is lower than in the US but the amount of people can afford apple is much more than that in the US. I mean you could see 20 BMW and Bens just walking 10 blocks literally in Shanghai, well, you probably never been there.

I think apple should've done this years ago.

 

[talkingfuture]

That could be dangerous throwing a challenge down to Apple like that. Maybe they will try a little harder now.

 

[Ping Guo]

I stopped in Lujiazui a few days ago, was walking by the new IFC shopping center, and what should I see but a hyper-modern glass and steel cylinder, centered in an amphitheater-type space adjacent to the IFC entrance. It was shrouded in red cloth, but the top was open and revealed a large silver

My understanding is that the retail space is underground. From the looks of it, this will be a flagship store for Shanghai.

 

[franswa za]

pearl and bad temper

so add this.......

 

[franswa za]

I stopped in Lujiazui a few days ago, was walking by the new IFC shopping center, and what should I see but a hyper-modern glass and steel cylinder, centered in an amphitheater-type space adjacent to the IFC entrance. It was shrouded in red cloth, but the top was open and revealed a large silver

My understanding is that the retail space is underground. From the looks of it, this will be a flagship store for Shanghai.

yes ping, watch that space!

 

[JediZenMaster]

Lenovo is one to talk considering that the quality of the thinkpads have taken a nosedive ever since they purchased the division from IBM.

 

[175170]

Funny.

On a side note... perfect opening time! Just when I'll be heading over to Shanghai... I can get my HDD fixed up there! Yay!

 

[broncopde]

Steve "The Big Pearl" Jobs has a strange ring to it.

Chuanzhi's comments don't seem to be a challenge to me. It really, strangely, seems like he's saying the they are toast if Apple focuses more on China. And he's saying these things a week before they open their Shanghai store? Weird.

 

[cybaster]

What? What are you trying to say?

Anyway, he definitely cares about China. A massive untapped market where Apple can pay suppliers dirt cheap amounts to pollute their surroundings, NIMBY style?

I just don't think the consumer market is worth a massive investment because people in general can't really afford Apple prices there, can't here either while we're at it, and those who can aren't really such a giant market segment that there's any reason to rush. Maybe I'm missing something.

You are hugely mistaken. Many people who live in those cities are on average richer than those who live in the San Francisco Bay Area. Now I am not talking about China as a whole (as some don't have access to free running water) but for the ones that can afford it.... they certainly CAN afford Apple products.

I am more surprised at the fact that there isn't an Apple store in Hong Kong yet (7 million people in a place smaller than San Francisco, and a place where both Westerners and Easterners meet)

 

[Xavier]

China could be a huge market for physical stores. Good idea.

 

[Ping Guo]

even though the percentage of people who can afford apple there is lower than in the US but the amount of people can afford apple is much more than that in the US. I mean you could see 20 BMW and Bens just walking 10 blocks literally in Shanghai, well, you probably never been there.

I cannot agree. First of all in the US practically everyone owns cars - in China private car ownership is still out of reach for the majority, and the result is you see a higher percentage of luxury cars there. If you know Shanghai then you know the cost of a vehicle registration here right? It's comparable to the price of a Chinese econo car! So of course you're going to see tons of Benzes, Bimmers, and Bentleys... how many people can afford a $3000 registration?

The second point is you're way overestimating the size of China's middle class. In no way is it a bigger consumer market than the U.S. Present estimates of "middle class" in China are between 100-200 million, but this is assuming a yearly income of just $9000. In the US, this would be below poverty level.

 

[Nem Wan]

Lenovo's CEO's attitude is no different from that of the U.S. PC industry when Apple was just about the Mac. The Mac wasn't what most people wanted. It was what certain people wanted very much! China is a huge market and for anyone to assume that Apple is interested in the lowest common denominator shows no understanding of Apple's history. Apple can be very profitable if they get a small, loyal market share.

 

[franswa za]

I cannot agree. First of all in the US practically everyone owns cars - in China private car ownership is still out of reach for the majority, and the result is you see a higher percentage of luxury cars there. If you know Shanghai then you know the cost of a vehicle registration here right? It's comparable to the price of a Chinese econo car! So of course you're going to see tons of Benzes, Bimmers, and Bentleys... how many people can afford a $3000 registration?

The second point is you're way overestimating the size of China's middle class. In no way is it a bigger consumer market than the U.S. Present estimates of "middle class" in China are between 100-200 million, but this is assuming a yearly income of just $9000. In the US, this would be below poverty level.

the PRC is becoming a world superpower in many ways...... penetrating africa and it's minerals, global trade and such............ a market no large US company can/should ignore! and the CHINESE people work hard!

we can talk again in 2-5 years time!

 

[TSE]

Lenovo is one to talk considering that the quality of the thinkpads have taken a nosedive ever since they purchased the division from IBM.

Ummmm they really haven't. In fact I think they've gotten better in some regards. The X201 is probably the best premium ultraportable out there, 10 hours of realistic battery life with a full fledge Core i5 is insane. The Thinkpad build quality is still there.

Lenovo Thinkpad = IBM Thinkpad.

 

[Shanpdx]

What about India?

the currency is not strong as Chinese currency, but with right price there is definitely a market in india ...

most of the unlocked older iPhones goes to these regions, - i guess/believe

 

[chugg]

Steve "The Big Pearl" Jobs has a strange ring to it.

Chuanzhi's comments don't seem to be a challenge to me. It really, strangely, seems like he's saying the they are toast if Apple focuses more on China. And he's saying these things a week before they open their Shanghai store? Weird.

That's what I got out of the article as well. I'm not sure why there are people already on the defense of Apple.

In any case, I don't see how Apple will take away much of their sales. Lenovo's core has always been business customers. And obviously no real business would ever run Macs *snicker*