China bans iPhone among government employees and Apple crashes in stock market

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Chinese authorities are prohibited from using this device. iphone at work. During the last few weeks, Beijing the central government informed its employees that they cannot use it in the workplace mobile According to ‘The Wall Street Journal’, it is the smart, flagship product of the US technology giant Apple or other devices produced by foreign companies.

The directive represents the next step in the strategy adopted by the Asian giant more than a decade ago to reduce its foreign dependency. technology important beyond its borders and empowering it cyber security. Moreover, this comes at a time of resurgence in trade tensions. United States of America. The ban is a reflection of the harsh stance of the US President Joe Biden administration, which has been applauding the bans in recent months. Tiktok -Belongs to Chinese giant byte– and hit business powers like Huawei by signing decrees that curtail both exports and investment in key sectors of China’s bubbling economy.

However, the effect of this restriction is still unclear. internal resources They confirmed to Reuters that at least three ministry staff had been ordered to stop using iPhones in the office, but they had not been given a deadline to do so. Other sources say that no information has been communicated to them yet, or that they have not received any information. open banHowever, it was warned that they would be responsible for the problems that may arise from the use of their devices. ‘Bloomberg’ reported that the ban will be extended to include state-owned institutions and companies.

Apple was the most affected

No company is exempt from this protectionist policy. Apple, which for decades has reached China to build its empire, is not doing the same. The company, which has owned the bitten apple since the beginning of the 2000s, procures most of the production of its devices from here. Described as “symbiotic” by the company’s chief executive Tim Cook, this relationship benefited both parties, but it also created non-trivial dependencies. Apple employs hundreds of thousands of workers who outsource through the company foxconnis responsible for the assembly of flagships. By contrast, China has become one of its largest markets, contributing about 19% of its global revenue.

The decision affected Apple shares, which fell 3.6% on the news. Added to growing trade tensionsfall in the stock market Wall Street can fuel insecurity and frighten foreign technology investment. US Secretary of Commerce, Gina RaimondoHe assured him last week that US companies based in China had told him the country had become an “unattractive” destination.

double threat

While its impact is difficult to quantify, the partial ban on iPhones will hurt Apple’s live business. In China, the Californian company is the leader of the mobile market, with a share of 70% by 2022, for more than $600. This provides comfortable dominance due to the setback that its main competitor Huawei has experienced. sanctions Americans.

But the Chinese giant can regain lost ground. It announced its launch last week. Matte 60 ProA high-tech 5G ‘smartphone’ that is believed to be beyond the reach of China. Experts agree that the excitement of this new device and Beijing’s veto will reduce Apple’s hegemony. Martin Yang, an analyst at the Oppenheimer investment firm, estimates the number of iPhone shipments it could lose in 2024 is 10 million. iPhone 15The new series of flagship product.

technological dominance

For years, China has been trying to reduce its technological dependence on foreign sources and increase its production power. Already in 2020, some government agencies had banned the use of iPhone among their officials; this was a constraint stemming from US policies. privacy From Apple making it difficult to access their devices to investigate cases of corruption. Employees were required to replace their phones with phones from national brands like Huawei. Xiaomi, Oppo anyone LiveFirms that have more and more weight in the telecommunications market.

This policy has been accelerated. trade war between Washington and Beijing. The economic and military field of the future passes through technology, and both powers, aware of this, have placed it at the center of this exchange. Blocked US sale last October semiconductors To China in order to hinder the development of his opponent. This component is strategic for the manufacture of consumer computers as well as supercomputers or smart weapons. China, on the other hand, has restricted the sale of critical minerals for this sector and has set a 2027 deadline for public companies to eliminate foreign presence in IT infrastructures.

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