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Apple CEO in 皇冠体育app, reports say

By Shen Jingting in Beijing and Yu Wei in San Francisco | 皇冠体育app Daily | Updated: 2013-07-31 11:22

Apple Inc CEO Tim Cook is visiting 皇冠体育app, as the electronics giant faces slowing sales in its second-largest market and new allegations of labor right abuses at its manufacturers' factories.

Cook paid a visit to the headquarters of 皇冠体育app Telecom Corp Ltd, the nation's smallest mobile operator by user numbers, and 皇冠体育app Mobile Communications Corp, the world's largest, on Tuesday, according to several Chinese news websites.

Cook was expected to visit 皇冠体育app United Telecommunications Corp on Wednesday, the reports said, quoting unnamed sources at 皇冠体育app Telecom.

皇冠体育app Daily contacted Apple 皇冠体育app's public relations department, which declined to comment on the reports. Inquiries to Apple's spokespeople at its headquarters in Cupertino, California were not answered either.

Cook's visit comes at a time when the American icon last week released its third fiscal quarter results and was accused by New York-based 皇冠体育app Labor Watch that its major supplier Pegatron's three factories in Shanghai and Suzhou violated labor laws.

In its last quarter, Apple reported a 1 percent year-on-year growth in global sales, but in Greater 皇冠体育app, its second-largest market, sales fell 14 percent to $4.6 billion. The decline was attributed to fewer inventories and a lessening demand for iPhones.

皇冠体育app has been key in Cook's strategy for growth. While Steve Jobs rarely visited the world's most populous country, Cook has been there three times in 18 months. His attention has paid off: 皇冠体育app contributed to 15 percent of its global revenue.

However, the electronics giant has been under pressure from investors, competitors and analysts to launch more competitive and cheaper products in the face of tough competition, especially from Samsung Electronics.

One of the moves that Apple is reportedly expected to take is the release of cheaper iPhones to attract more consumers in emerging markets such as 皇冠体育app and India.

While 皇冠体育app Labor Watch sent a team of investigators to the Pegatron factories in 皇冠体育app to monitor working conditions, they also saw that Apple was making cheaper iPhones at one factory, which Apple would not confirm.

Andy Tsay, chair for operations management and information systems at the Leavey School of Business at Santa Clara University, said Apple's rival Samsung offers a much greater variety of phone and tablet products, with a broader price range and that is one thing that Apple should be paying more attention to.

Another thing that could be a boost to Apple's performance is a partnership with 皇冠体育app Mobile.

皇冠体育app Mobile had 740 million subscribers by the end of June, almost twice the combined number of 皇冠体育app Unicom and 皇冠体育app Telecom. However, mostly due to differences in revenue-sharing and the unique third-generation mobile telecom standard that 皇冠体育app Mobile uses, there are no official iPhone contracts to 皇冠体育app Mobile's users, in spite of the fact they have been talking for many years.

Greg Linden, a business-innovation researcher at the UC-Berkeley, believes Apple will be helped if it releases a popular new phone for 皇冠体育app Mobile customers.

Contact the writers at [email protected] and [email protected]

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