Tomahawk, WI 01/08/2014 (BasicsMedia) – Apple Inc (NASDAQ:AAPL) has announced on January 10, the start of its annual Chinese New Year online sales. The company is doing this to offer opportunity to customer who would wish to get its products at discounted rates.

The company has not issued the exact figures for its special offering. However, history tells us that the company would take off 8 – 10 percent from the current prices of iPhone, iPad and iPod touch. Apple Inc (NASDAQ:AAPL) is making this opportunity to customers in China, Malaysia, South Korea, Taiwan, Singapore, Hong Kong and Thailand.

It is rare to get Apple Inc (NASDAQ:AAPL) devices at cheaper prices, and the company hopes to see overwhelming orders during this offering. Besides price cuts, the company will also offer free shipping.

In this offering, Apple Inc (NASDAQ:AAPL) is keen to remain in the heart of Chinese consumers. This is a market that it once controlled, but the company is losing its grip on the market in the recent times. The company is facing growing competition from home-grown manufacturers who offer cheaper devices. It is also distracted by Samsung Electronic which is vying for the upper-tier market just same as Apple Inc (NASDAQ:AAPL).

Of late, another big force entered the smartphone market, and that force is Google Inc (NASDAQ:GOOG). Like Apple Inc (NASDAQ:AAPL) and Samsung, Google is also vying for a bigger share in the Chinese smartphone market. The challenge is that Google has come into the contest with a price war. The company offers high-end devices, but at heavily reduced cost, causing fears that it could spoil the party for the leading smartphone manufacturers.

China distribution deals

Although Apple Inc (NASDAQ:AAPL) is faced with mounting challenge from competitors, its products still have a huge following in China. Recently the company sealed a deal with the leading telecom carrier in the market – China Mobile . This agreement allows the carrier to offer iPhones at subsidized cost on its network which boasts more than 760 million people.

Prior to the deal with China Mobile, Apple Inc (NASDAQ:AAPL) has closed similar distribution deals with other telecom carriers in the market. Those deals were signed in September with Unicom and China Telecoms. The company is now in distribution agreement with the three leading telecom operators in China.

It has become necessary for Apple Inc (NASDAQ:AAPL) to cut strategic distribution deals in China because failure to do so was going to trim its share of the market. Furthermore, offering its products through crriers allows customers to get the items at reduced prices and this offers a great sales opportunity for the company.

Prospects in China also call for sustainable distribution agreements. It is estimated that smartphone sales in China will go up significantly in the next few years, but also usually, only those who come up with winning strategies can celebrate that growth and this is what Apple Inc (NASDAQ:AAPL) is trying to do with its current moves.

In the U.S

Apple Inc (NASDAQ:AAPL) considers the U.S. asone of its key markets. However it is also under pressure in the market due to Samsung. The latest available data suggest that Apple Inc (NASDAQ:AAPL) was able to gain market share for its iPhone 5C and 5S during 2013. However, such gains were punctuated by low sales in the months of September and October. This simply means that the company still has a lot of work to do in winning over a bigger market share in the U.S.

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