Apple's product development, supplier relations, and market strategy in China
China and Apple seem to have experienced a love relationship which is no surprise since Apple's products, although ‘designed' in California, are mostly produced in China. As recent as August, 2012, Canalys indicated that China accounted for 27 percent of global smartphone shipments overall in the quarter, compared with 16 percent for the U.S. (CNN Money). Apple's relations with suppliers are, however, more pessimistic. Apple's code of conduct in 2007 determined that "working conditions in Apple's supply chain are safe, that workers are treated with respect and dignity, and that manufacturing processes are environmentally responsible" (Duhigg & Burboza, January 25, 2012)
The reality, however, as evidenced by working condition within the Foxconn factory proved otherwise, and Apple's workers, despite slight and voiced improvement, are still paid paltry wages with horrendous working conditions that demand improvement. Apple's present situation may best be summed up as shades of gray. Apple and China have maintained something of their flourishing relationship, but Apple seems to slowing somewhat due to external conditions. These mostly include their exorbitant price for their iPhone which is causing China, for the first time, to prefer other companies as suppliers. As of the last quarter, Android sold 100 million quarterly smartphone shipments and shared that No. 1 spot with Samsung who boasted a 31 percent share of the market. Apple and Nokia meanwhile claimed second two spots. But Apple still seems to be going strong.