Is Apple’s Stock Preparing for Sleeping Giant Growth?
Apple (NASDAQ:AAPL) is working on growing its footprint in China and will open flagship stores in the cities of Chengdu and Shenzhen, according to government officials in the country. The company currently has only five stores on the Chinese mainland — three in Shanghai and two in Beijing.
Earlier this week, Apple submitted documents to the Shenzhen government to open a store in Holiday Plaza, according to Reuters. “Apple is in the final stage and only needs to submit an environmental permit in order to gain approval,” a Market Supervision Administration official said. The company has reportedly already received approval for the Chengdu store in southwestern China. Apple didn’t comment, but its website showed that the company was hiring Apple Store sales staff in Chengdu and Shenzhen.
China is a growing market for the company, whose profit almost doubled in the country last quarter after a big growth in iPhone sales. However, it is still fighting a trademark court battle with a Chinese company that has stopped it from putting the new iPad on shelves there. Apple and Proview Technology are currently in court as both parties stake a claim to the ownership of the iPad trademark.
A Proview lawyer told Apple (NASDAQ:AAPL) that the company will intensify legal action if Apple were to start selling iPads in Shenzhen.
The iPhone maker has also been trying to get rid of unauthorized re-selling of its products in the country, with reports that entire fake Apple stores have been set up where even the employees thought they actually worked for the Caifornia company.