Apple never stops reinventing both design and technology to remain competitive around the world. Its iPod has become an icon, holding an impressive 70 percent share of the U.S. market for digital entertainment players. Every time Apple introduces a new version of its sleek iPhone, tens of thousands of buyers crowd into Apple Stores. Its Macintosh computers are not yet as popular as PCs made by Hewlett- Packard, Dell, Lenovo, and its many other rivals, but Apple is steadily gaining a loyal following among consumers and business customers alike.
Now Apple’s plans for growth include aggressive expansion in China. Today, the iPod’s market share in China is less than 8 percent and the Mac’s market share is less than 1 percent. Can Apple translate its recipe for success yet again to build sales and profits in China?

1. Why must Apple pay attention to the business cycle when planning to sell more products in China?
2. Is Apple operating under conditions of perfect competition, monopolistic competition, oligopoly, or monopoly? How do you know?