Apple Inc. has upped its game in Asia this year. You won't see the evidence so much in market share as in a scene that has become almost commonplace: people lining up for hours (or even days) to be among the first to get an iPhone 4 or iPad. Gray markets and scalpers have sprung up as entrepreneurial individuals try to profit from this Asian demand. So it comes as no surprise that the company has defended its spot at the top of The Wall Street Journal's annual Asia 200 survey.
Apple Chief Executive Steve Jobs speaks on stage, with the Shanghai Apple store displayed on a screen behind him, during Apple's music-themed September media event in San Francisco in September.
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Indeed, big technology names occupy all but two positions in the top 10. Lilian Leong, managing director at advertising agency Leo Burnett in Hong Kong, says the findings reflect the boom in consumer demand. With Asia having firmly recovered from the economic downturn, people are simply "looking to enjoy life more," she said.
Apple's market share in Asia is still tiny, but rising, notably in smartphones. According to market-research firm IDC, Apple had 9.4% of that market in the second quarter of 2010, up from 4.6% a year earlier. (There was less progress with personal computers, where its share rose to 1.8% from 1.6%.)
Bryan Ma, Singapore-based director of personal systems research at IDC, said Apple, which has traditionally focused on North America and Western Europe, is clearly starting to prioritize Asia. "It's relieving to see them making an effort internationally," he said.
Another technology leader that consistently performs well in the Asia 200 is Nokia Corp., amid questions surrounding its smartphone and Internet strategy. Nokia remains the largest cellphone producer in the world by production and continues to draw a strong following in Asia.
The Asia 200 survey found it the fifth-most-admired company in the region, in the top five in both innovation and quality—though it may be telling that Nokia dropped to 10th place from seventh in long-term vision. This reflects worries that the company has become excessively bureaucratic, hampering its ability to respond quickly to rivals.
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Still, with its recent change at the top—bringing in its first non-Finnish chief executive—the company demonstrated that it is willing to break with tradition. Nokia also announced, when releasing its third-quarter earnings, plans to streamline operations (including a 3% cut in work force) and sharpen the focus on its Internet business.
Nokia has more than 40% of the global smartphone market—it's particularly popular in emerging markets—but its profit margins are lower than its competitors' and its Symbian OS is increasingly under threat from Google Inc.'s Android. "Android is really moving in the direction of competing against Apple," said Anshul Gupta, Gartner's Mumbai-based principal analyst. "The experience you get on some of the good Android devices is quite close to that of Apple's."
Indeed, the positive reception toward Samsung Electronics Co.'s new Galaxy smartphone, which runs Android, helped shift the company up four places to 12th overall in the Asia 200 rankings. In its home market, South Korea, Samsung tops the list, ahead of Apple and Microsoft Corp. of the U.S.
Microsoft, too, has stepped up as a smartphone competitor, launching Windows Phone 7 in early October. It is third overall in this year's survey, clawing back ground following a fall to sixth place in 2009 from first the year before, when it was dogged by antitrust lawsuits in Europe and a messy, unsuccessful bid for Yahoo Inc. Once more this year it ranks as the multinational with the best long-term vision, continuing a streak that dates to 2002.
Notably rolling in the other direction was Toyota Motor Corp., traditionally a strong performer in the survey, which slid down the overall list to 14th place from second after being plagued by massive global recalls. In corporate reputation, it fell to ninth place from first. At home in Japan, it ranked 12th overall, down from fifth.
Amazon.com Inc. shot up the table to 19th place from 32nd as the growing interest in e-books and tablets helped raise the company's profile in Asia. Though the actual number of e-book users in Asia is still comparatively small, Leo Burnett's Ms. Leong says just the "perception" that Amazon.com is innovating is enough to boost its standing.
Intel Corp. rose by 10 places to fourth as it kept itself in the spotlight through a string of acquisitions—more evidence of its longstanding skill at turning a "behind the scenes" technology company into a consumer brand.
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