{"id":1273200,"date":"2023-09-08T07:53:06","date_gmt":"2023-09-08T02:23:06","guid":{"rendered":"https:\/\/trak.in\/stories\/?p=1273200"},"modified":"2023-09-08T07:53:42","modified_gmt":"2023-09-08T02:23:42","slug":"china-bans-iphones-for-all-govt-officials-apple-loses-rs-16-lakh-crore-in-48-hours","status":"publish","type":"post","link":"https:\/\/trak.in\/stories\/china-bans-iphones-for-all-govt-officials-apple-loses-rs-16-lakh-crore-in-48-hours\/","title":{"rendered":"China Bans iPhones For All Govt Officials; Apple Loses Rs 16 Lakh Crore In 48 Hours"},"content":{"rendered":"\n

China ordered officials at central government agencies to not use Apple’s iPhones and other foreign-branded devices for work or bring them into the office.<\/p>\n\n\n\n

\"China<\/figure>\n\n\n\n

Implications<\/strong><\/p>\n\n\n\n

The ban comes ahead of Apple’s upcoming event next week where it will launch the next iPhone.<\/p>\n\n\n\n

It could revive concerns among foreign companies in China as its rivalry against the US escalates.<\/p>\n\n\n\n

Notably, it is one of Apple’s biggest markets and generates nearly a fifth of its revenue.<\/p>\n\n\n\n

However the ban is not likely to create an immediate impact on earnings due to the popularity of the iPhone in China.<\/p>\n\n\n\n

Usual tactics<\/strong><\/p>\n\n\n\n

The move is not surprising from China’s end. <\/p>\n\n\n\n

It has been striving to cut reliance on foreign technologies for over a decade now.<\/p>\n\n\n\n

It has been asking state-affiliated firms such as banks to switch to local software and promoting domestic semiconductor chip manufacturing.<\/p>\n\n\n\n

It ramped this up in 2020, when its leaders proposed a so-called “dual circulation” growth model to move away from relying on overseas markets and technology over concerns regarding data security.<\/p>\n\n\n\n

Rivalry against US<\/strong><\/p>\n\n\n\n

This May it urged big state-owned businesses to contribute to its drive towards achieving self-reliance in technology amid rifts with the United States.<\/p>\n\n\n\n

Tensions between both countries have been high as the US works with allies to block China’s access to vital equipment needed to keep its chip industry competitive.<\/p>\n\n\n\n

In turn Beijing has been restricting shipments from prominent U.S. firms including planemaker Boeing and chip company Micron Technology.<\/p>\n\n\n\n

Apple in China<\/strong><\/p>\n\n\n\n

The latest ban showed that China is leaving no stone unturned towards its goal and that not even the biggest company in the world is spared.<\/p>\n\n\n\n

“Even Apple is not immune … in China where it employs hundreds of thousands, if not more than a million workers, to assemble its products through its relationship with Foxconn,” D.A. Davidson analyst Tom Forte said.<\/p>\n\n\n\n

This “should inspire companies to diversify both their supply chain and customer concentrations to be less dependent on China in the event the tensions get worse.”<\/p>\n\n\n\n

China \u201cuninvestable\u201d<\/strong><\/p>\n\n\n\n

U.S. Commerce Secretary Gina Raimondo said U.S. companies had complained that China had become \u201cuninvestable<\/a>\u201d.<\/p>\n\n\n\n

They referred to fines, raids and other actions that have made it risky to do business in the world’s second-largest economy.<\/p>\n\n\n\n

The US, in turn, has issued similar bans in the country against Chinese smartphone maker Huawei Technologies and short video platform TikTok, owned by China’s ByteDance.<\/p>\n","protected":false},"excerpt":{"rendered":"

China ordered officials at central government agencies to not use Apple’s iPhones and other foreign-branded devices for work or bring them into the office. Implications The ban comes ahead of Apple’s upcoming event next week where it will launch the next iPhone. 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