Chinese authorities shut two stores in Kunming that used Apple Inc's logo without the company's permission because they lacked the proper business licenses, a newspaper run by the southwestern city's government reported.
Three separate unauthorized Apple stores, which were also investigated, had operating licenses, according to the Dushi Shibao newspaper report, which was posted on the Kunming city government's web site. Officials inspected more than 300 vendors of electronic products in the city, Dushi reported.
The move comes about a week the "BirdAbroad" blog began posting photographs of fake Apple stores in the Chinese city. The emergence of the unauthorized retailers underscore the company's inability to meet surging demand for iPads and iPhones in the world's second-largest economy.
Said Jim Tang, a technology analyst at Shenyin & Wanguo Securities Co in Shanghai, "In areas outside of the biggest cities, it's difficult to find Apple products, and there is strong demand. For a big country like China, Apple's sales network does not go far enough, and the company needs to expand".
The city government has not received any requests from Apple on the matter, the report said. Apple declined to comment on the findings, according to the report.
Apple operates four stores in China, all in Beijing and Shanghai, and has more than 900 authorized sales agents across the country, in addition to a distribution agreement with carrier partner China Unicom (Hong Kong) Ltd. Apple's stores in Beijing and Shanghai generate, on average, the company's highest traffic and revenue, Chief Financial Officer Peter Oppenheimer said in January.
Said Paul French, founder of Shanghai-based market research company Access Asia, "The Chinese are suckers for iPhones and iPads, just like everybody else. Apple should police their supply chain a bit better".
Three separate unauthorized Apple stores, which were also investigated, had operating licenses, according to the Dushi Shibao newspaper report, which was posted on the Kunming city government's web site. Officials inspected more than 300 vendors of electronic products in the city, Dushi reported.
The move comes about a week the "BirdAbroad" blog began posting photographs of fake Apple stores in the Chinese city. The emergence of the unauthorized retailers underscore the company's inability to meet surging demand for iPads and iPhones in the world's second-largest economy.
Said Jim Tang, a technology analyst at Shenyin & Wanguo Securities Co in Shanghai, "In areas outside of the biggest cities, it's difficult to find Apple products, and there is strong demand. For a big country like China, Apple's sales network does not go far enough, and the company needs to expand".
The city government has not received any requests from Apple on the matter, the report said. Apple declined to comment on the findings, according to the report.
Apple operates four stores in China, all in Beijing and Shanghai, and has more than 900 authorized sales agents across the country, in addition to a distribution agreement with carrier partner China Unicom (Hong Kong) Ltd. Apple's stores in Beijing and Shanghai generate, on average, the company's highest traffic and revenue, Chief Financial Officer Peter Oppenheimer said in January.
Said Paul French, founder of Shanghai-based market research company Access Asia, "The Chinese are suckers for iPhones and iPads, just like everybody else. Apple should police their supply chain a bit better".
