You think a business would choose to put itself inside a market that has traditionally not been a consumer of the product (though it has been available) because they see it as untapped potential? You're insane.
Using your example, if the iPhone does, or would, attract people in China but the product is simply not available, that is an untapped market. If the iPhone has been available in China but hasn't sold well, you don't go buy a bunch of Apple stores in China.
What you're suggesting is the classic case of 'putting good money after bad'.
Put it this way - if there were no baseball team in Atlanta, and whites traditionally flock to baseball more than blacks, would you really seek Atlanta as the city to out your new team because of 'untapped potential'? Of course not.
I'm going to sell mini-skirts in Saudi Arabia. Since they don't traditionally buy (and actively hate) mini-skirts....untapped potential!
Actually, the iPhone wasn't in China because of government restrictions. But the black (no pun intended) market was HUGE and immensely profitable. Also, because for some weird reason, for many years, Asians tended to prefer flip phones (and still do in Japan).
Did Apple give up on the market? No, they lobbied and advertised and waited -- because they realized that, despite the costs and the uphill battle, winning China was the promised land.
It's the same reason why Google tried to get into China for years and years.
Have you bothered to try and figure out why African Americans might not be flocking out in droves to attend MLB games? Maybe it's a residual effect from the lack of black players in the league in the 80s/early 90s. Maybe it's the lack of baseball diamonds in inner-cities. Maybe it's a commentary on poverty levels in the country.
But you know what? That's changing. The number of black players in the game is up, MLB has invested heavily in inner cities ... it's really only a matter of time before those changes are reflected in the stands.
So tell me again why the ATLANTA Braves wouldn't want a piece of that action?
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If you heard that the Sheikh was going to relax social restrictions on mini-skirts wouldn't you want in on that business? You know -- since the Saudis have engaging in progressive reforms for, I don't know, several decades now. Oh, I forgot, you already took all your business out of the country because Saudis traditionally don't buy mini-skirts.