iPad over IPAD Triumphs: Apple Officially Owns iPad Name

by Holly Shoemaker 

Apple’s legal battle with Proview Technology, a Chinese-based technology company, has come to end. Today, a Chinese court has confirmed that Apple has paid Proview Technology $60 million to settle the dispute over who owns the right to the iPad name.

While a lawyer for Proview said the company hoped for $400 million, Proview really had no choice but to settle. The company faces a growing amount of debt.

Overview of Dispute

Proview claimed it trademarked the IPAD, not iPad in 2001. Apple paid the company $55,000 for the name. However, the Court did not recognize the payment and ruled last year that Proview still owned the name. Proview also tried to get iPads removed from stores in China.

What Settlement Means for iPad Market

China, with a population of 1.3 million people, represents Apple’s second-largest market behind the United States. Now that both sides have removed a legal obstacle, Apple has the opportunity to bring the new iPad, or the iPad 3 for those who cannot part with the old naming convention, to China. The iPad 2 was in demand, and earlier this year China led the way in app sessions and new activations.

Concluding Thoughts

For some, $60 million may seem like a larger sum of money than Apple wanted to pay. However, for Apple, the price does not seem that high given the potential windfall that will come with selling the new iPad in China.

China Leads in App Sessions and New Activations

by Holly Shoemaker

Flurry Analytics has come out with data that shows China has become the world's leader in app sessions and new iOS and Android activations. Flurry defines an app session as launching and using an application in one sitting.

Numbers at a Glance

• The app session growth rate in China increased by more than 1,100 percent from Q1 2011 to Q1 2012. In Q1 2011, China ranked number seven.
  
• At the end of March, Flurry projects China will account for 24 percent of iOS and Android activations. In comparison, the United States is expected to account for 21 percent.
• Americans still purchase more smartphones and tablets. However, in February 2012, China, for the first time, activated more devices. In January 2011, the United States made up 28 percent of the world’s activations versus eight percent for China.

Analysis of the Data

I am not particularly surprised by this data. Yes, the large increase is noteworthy. However, China’s population and its consumer’s well-known interest in smartphones, tablets and apps explain the increase.

Concluding Thoughts

Both Apple and Google have issues to overcome in China. Apple awaits a court decision that could affect its overall brand, has dealt with claims of poor working conditions in its Chinese factories and delayed the opening of the Beijing Apple Store in January.

While Android activations are increasing, that does not necessarily mean Google sees the profits. For Android, the amount of app stores in China may become problematic. There are multiple rivals to Google Play in China, and users often download their apps from native app stores. The importance of China’s role in the app realm does not surprise anyone; the latest figures should assist app developers in positioning themselves.