I don't understand what you're saying. The alternative is not doing business in China at all, how would they sell more phones in China by getting out of the Chinese market, vs staying in China and complying with the government's demands? I'm very curious about what your market research indicates, because it sounds like a contradiction.
I think what xbmcuser is saying is that Apple is screwed either way: don't pull the apps and be kicked out of China altogether, or pull the apps and lose a competitive advantage. Not that Apple would lose _more_ this way, simply that they still lose.
Yeah that's what I meant either way Apple is going to loose it stays in China or not. They already stopped weechat Payments etc now they are stopping vpn apps so another reason for people in china not to use Apple. I bet in a few years or so China will make using foreign phones about national pride once that happens all other phone manufacturers including Apple will be sidelined.