Look at the evidence. Look at the passion. Today we learn one Chinese teenager is so crazy to get an iPhone 4 she was caught trying to sell her virginity on Weibo. A few weeks ago, one Chinese teenage boy sold his kidney in exchange for an iPad.Don't misunderstand me. I'm not representing those events as good news, just as illustrative of the passionate intensity with which Chinese consumers regard Apple products.China already accounts for around 10 percent of Apple's revenues, and this is growing insanely fast. Two years ago Apple generated just $1 billion business in China.Speaking during Apple's Q2 financial call, Cook said: "Greater China saw iPhone sales being up over 3x, about 200 -- almost 250%. And this catapulted revenue for the first half or first fiscal half in Greater China to just under $5 billion, which is up almost 4x year-over-year."
MONTAGNE: Besides regulations, how much do cultural differences play in determining the fate of any given business venture in China?Mr. MCGREGOR: Well, sometimes it's hard for the big American companies, because they have developed themselves in the continental-sized economy of the U.S., and they've gotten very good at what they do, but they are very U.S.-centric in the way they do things and the way they think.You have to realize you're in China, and you have to realize you've got to do some things differently. And these companies that come in here and say this is how we do it anywhere in the world and this is how we're going to do it in China have their heads handed to them before they learn the lesson. And for most of the big multinationals, they really have learned those lessons. They came in in the mid-'90s with way too much money and ambition, and they all got - had very difficult times, and they've since localized, learned how to train Chinese management.
The Apple Store in Shanghai is just like any Apple retail stores around the world, allowing customers to try the Apple products any way they like. Of course, you can try an iPhone in the store, and make calls with it. The Shanghai Apple Store allows customers to make any calls, including international calls, and there’s no time limit. So, there are some “smart” Chinese often visit the store, picking up the demo iPhones, and start making calls. Some of them even bring along a list of phone numbers.