China is increasing restrictions on iPhone use. The ban, which started in September, first prohibited personnel working in government institutions from using iPhones during working hours. China’s bans on Apple devices are rapidly expanding, according to recent news.
Apple ban imposed by China is expanding!
The ban now covers government agencies in eight or more states. This prohibits the use of iPhones both in the office and for official work. There are multiple reasons behind this expansion. China cites security concerns as the primary reason. The Chinese Ministry of Foreign Affairs reported that many security vulnerabilities were detected in Apple phones in September and that it was following the news in the media about this issue.
Political motivation is another possibility. Huawei’s long-term restriction of access to 5G technology due to US sanctions and its recent launch of its new 5G phone Mate 60 Pro strengthens the emphasis on national technology and the desire to support domestic brands.
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It cannot be ignored that instead of Apple, options such as Huawei, Xiaomi, Honor and local brands within BBK Electronics (Realme, Oppo, OnePlus, Vivo, iQOO) offer models with faster charging and larger batteries. Even in foldable screen technology, while Apple does not currently offer any models, brands such as Huawei, Oppo and Vivo have stood out in the market with foldable models.
Although the full scope and reasons for the ban are not yet clear, it may be thought that China has entered a new era in its technology and security policies. This development will require international technology giants to closely monitor their activities in the Chinese market and consider potential risks.
Possible effects of China’s iPhone restrictions
China’s expansion of restrictions on iPhone use could have significant consequences for Apple in both the short and long term. In the short term, the ban would negatively impact Apple’s sales in China. In addition, if we talk about 2022, China is Apple’s second largest market and the company earned $19.2 billion in revenue from China in the 2022 fiscal year. The ban could significantly reduce this revenue.
The direct effect of the Chinese Apple ban will be the ban on iPhone use by personnel working in government institutions. This will affect approximately 10 percent of total iPhone users in China. However, it also indirectly affects other users. For example, there is a possibility that government agencies will ban suppliers and contractors who use iPhones. This could negatively impact Apple’s supply chain and distribution channels in China.
In the long run, it may weaken Apple’s competitiveness in the Chinese market. Domestic brands such as Huawei, Xiaomi, Oppo and Vivo are rising rapidly as competitors to iPhones in China. These brands produce phones that offer better features at lower prices than Apple. Government authorities in China banning the use of iPhones may further increase the competitive advantage of domestic brands.
The ban also affects Apple’s research and development activities in China. Apple is making significant investments to develop new products and technologies in China. The ban also reduces the returns Apple expects to make from these investments.
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