By 
China is reportedly contemplating a sweeping ban on Apple iPhones for government employees, according to sources cited in a Bloomberg report. The proposed ban would affect sensitive departments within state-owned enterprises and government agencies, which have allegedly begun instructing their staff not to bring iPhones to work.
This ban is anticipated to be expanded to encompass a broad spectrum of state-owned businesses and government agencies, although there has been no official announcement, leaving uncertainty about the extent of adoption among these entities. For instance, PetroChina, a state-owned oil company employing millions, is cited as an example.
The potential iPhone ban carries significant implications, as China accounts for approximately 20% of Apple’s revenue, and it is also the country where most iPhones are manufactured. In its recent quarter, Apple reported sales of $15.8 billion in the greater China region, reflecting a 7.9% increase.
However, Apple has been diversifying beyond China in response to changing dynamics in the consumer electronics market. Earlier this year, Foxconn, Apple’s primary iPhone supplier, announced plans to increase investments outside of China due to declining consumer demand for electronics. While a substantial portion of Foxconn’s revenue originates from products manufactured in China, the company intends to expand its overseas operations.
Apple has also been intensifying its focus on India as it witnesses growing sales in the region. These strategic moves demonstrate Apple’s adaptability to evolving market conditions.
This development comes shortly after U.S. President Joe Biden issued an executive order granting the Treasury Department the authority to limit or prohibit American investments in Chinese semiconductors, microelectronics, quantum information technologies, and specific artificial intelligence systems. China expressed disappointment regarding these restrictions, emphasizing their potential impact on the interests of both Chinese and American companies and investors.
The executive order is primarily aimed at preventing American capital and expertise from contributing to the development of technologies used by China to advance its military capabilities, a move the U.S. contends could pose national security risks.
Comments