China Bans iPhones | Orders Government Officials to Stop Using iPhones at Work
China is the biggest market for Apple after the USA with one-fifth of its revenue coming from the Chinese cell phone market. And it looks like that market is about to see a change as China bans iPhones for government officials.
China has been trying to reduce its dependency on foreign technology for decades now. It has maintained its urge to state-affiliated firms to shift towards domestic tech solutions. This in turn promotes the domestic chip manufacturing industry.
China Reportedly Bans iPhones in Workspaces
According to the latest Wall Street Journal article, the Chinese Government is asking all its Central Government agencies to stop using Apple iPhones at work. But the extent of the ban is still unclear.
This ban comes right before the anticipated launch event of Apple’s iPhone 15. This will surely affect the revenue figures in the Chinese market. Any further action can become consequential and provoke serious concern for foreign enterprises operating in China as Sino-US tensions soar.
The Chip Manufacturing Battle Between the Two Superpowers
The Sino-US tensions rise as Washington works with the allies to block China’s access to important equipment needed to keep its chip industry competitive. In turn, Beijing limits the shipments from prominent US firms including planemaker Boeing (BA.N) and chip company Micron Technology. The restrictions inflicted by both countries on each other can lead to growing individual markets across the globe.
US Commerce Secretary Gina Raimondo, during a visit to China last week, said US companies had complained to her that China had become uninvestable. This points to hefty fines, raids, and other strict actions, making it delicate to undertake business in the world’s second-largest economy.
China’s Move to Stimulate Chip Manufacturing
Huawei’s recent challenges accruing from US restrictions, the Mate 60 Pro’s launch holds significance. The smartphone’s potential self-sufficiency in terms of chipset marks a milestone for China and Huawei. Apart from Huawei, the US is gradually implementing the TikTok ban. With some states like Montana already announcing a ban on the app. The politics behind tech is raging towards an eventual confrontation between the US and China. How will Apple respond to the ban? Let us know your thoughts.