Dealing with Chinese counterfeiters and cloners: A prediction concerning the iPhone’s entry into the||Chinese market

Wu Li Yuan

Studenteropgave: Semesterprojekt


In this project I analyze how Chinese counterfeiting and cloning affects even high tech products like Apple Inc’s iPhone. In doing so I provide a thick description of the concepts and context of IP infringement and cloning in Chinese industry, as well as Apple the firm, iPhone the product, Apple’s supplier Foxconn, and Meizu a Chinese cloner. I outline a theoretical framework consisting of the classic organizational economics theories Transaction cost economics, Agency theory, Resource based view theory, as well as four strategies for dealing with Chinese counterfeiters developed by A.T. Kearney. I then use these thick descriptions and the theoretical framework to analyze and predict what will be the likely outcome of Apple Inc’s iPhone entering the Chinese market. To do this I develop a causal chain starting with the decision to enter the market, then picking the right strategy, and then dealing with copiers, cloners, and competitors, based on the previously picked strategy, while possibly being affected by contingent factors such as IP leaks. Based on this analysis I conclude, and thus predict, that the iPhone will enter the Chinese market in 2009, that Apple will use an outpacing strategy, and if unaffected by contingent factors Apple will be very successful, but I find it likely that contingent factors for instance concerning monitoring of IP will adversely affect the outcome.

UddannelserErhvervsøkonomi, (Bachelor/kandidatuddannelse) Bachelor el. kandidat
Udgivelsesdato17 jun. 2008
VejledereJoarder Alamgir Kabir


  • Chinese counterfeiting and cloning
  • Transaction cost economics
  • IP infringement and cloning in Chinese industry
  • Resource based
  • Apple Inc’s iPhone
  • Agency theory