China's iPhone Curbs Rattle Markets

[sesterceshop]

Apple's facing a rocky road in China as Beijing restricts iPhone use among government staff, causing Apple's stocks to drop.

Source: https://www.reuters.com/technology/apple-tumbles-drags-wall-street-lower-fears-grow-over-china-iphone-curbs-2023-09-07/

Not even strong ties with China can shield tech giants from growing tensions. The Huawei situation also adds to the complexity, with their new smartphone making progress despite U.S. sanctions. Apple's main chip supplier, Qualcomm, took a hit, and lawmakers from both parties express concerns about China's influence on national security.

This situation could reshape the tech market in China and beyond, potentially impacting Apple's standing. Probably other tech companies with stakes in both countries too. Anyone buying this dip?

[OgNasty]

I don’t think this is a crazy response from China. We have done similar things to companies they operate in the past. However, this is an escalation against one of the world’s largest companies which may signal us heading towards a bit of a Cold War with China. This likely won’t end up being a good thing for anyone.

[Hispo]

I don’t think this is a crazy response from China. We have done similar things to companies they operate in the past. However, this is an escalation against one of the world’s largest companies which may signal us heading towards a bit of a Cold War with China. This likely won’t end up being a good thing for anyone.

I don't think it will go as far as a Cold War, in commercial context that is.
Apple is just interested in the China because the dirt cheap manufacturing prices they can get there (as any other producer looking to make their products massively and as cheap as possible) and also because the size of market of users.

In the end, Apple can always move their factories out China to other developing markets where labor is cheap, like India, but if they do it (in order not to depend much on Chinese resources and chips) Pekin could retaliate by banning Apple products from China. That scenario would likely make their stock value to dump much much more in comparison to a local dump because of some official CCP announcement like this one.

[aoluain]

I don’t think this is a crazy response from China. We have done similar things to companies they operate in the past. However, this is an escalation against one of the world’s largest companies which may signal us heading towards a bit of a Cold War with China. This likely won’t end up being a good thing for anyone.

No I dont think so either, wasnt there a big push back against Huawei and its 5G
'something or other' not so long ago?

I suppose they are cautious and or paranoid about sensitive information possibly
getting leaked over a US brand smart device, cant blame them really but they are
happy to have the production of the phones remain in China though so I wonder
where this is going to lead....

Maybe a cold war of sorts

[Stepstowealth]

China is a very technological intelligent nation, because of how well they understand and know technology, they know that it is very possible for the iPhone to become a security breach hence the precaution of curbing the use of the American product by their officials. Since they know it is possible, it is good they are taking action against it because America can also do the same and curb the use of a Chinese product if they have reason to believe that it can cause them a security breach one way or another.

[o48o]

Apple's facing a rocky road in China as Beijing restricts iPhone use among government staff, causing Apple's stocks to drop.

Source: https://www.reuters.com/technology/apple-tumbles-drags-wall-street-lower-fears-grow-over-china-iphone-curbs-2023-09-07/

Not even strong ties with China can shield tech giants from growing tensions. The Huawei situation also adds to the complexity, with their new smartphone making progress despite U.S. sanctions. Apple's main chip supplier, Qualcomm, took a hit, and lawmakers from both parties express concerns about China's influence on national security.

This situation could reshape the tech market in China and beyond, potentially impacting Apple's standing. Probably other tech companies with stakes in both countries too. Anyone buying this dip?

Sure, i could buy it if i would be stocking apple. But this isn't really a surprising move from China. I would be totally skeptical using tech from basically hostile country that might have government backdoors that would be exposing sensitive government information.

Especially when chinese spys steal US sensitive information from governement, if i would be chinese i would totally assume that they were planning to spy with all the possible ways possible. Including backdoors in iphones.

[Pingrapole]

As far as I know China is a conservative nation they don't want to be insulted and if they don't hit somewhere directly they try to hit it through some other technology just like that.I think this is one
I think this is one The start of the cold trade war and China's trade war with the rest of the world has been a hot topic for years.This is part of the reason why they try to retaliate against their opponents in new ways when they find fault.To put it simply, China does not want anything to do with Apple in its country, so they have taken such a decision and have shown such a policy to stop their business in China.This could be a ploy to boost their business as a result of the US ban, since the US is an American company China may be taking advantage of the incident like information theft.As part of this, China has hit Apple's chief supplier, raising concerns between the two sides In a word, iPhone is running life as a single market. America actually wants China to take over the market alone But America is not able to stop it is their internal matter, but China is taking one step after another to achieve their goal.I do not know whether their goods will prevent the market, but I think they will to some extent, and they are a conservative nation, so that they can help their people and their neighbors to buy them.

[teosanru]

Isn't it the same thing that rest of the world has done for Chinese phones? I know there are strong allegations on Chinese company about data collection but this doesn't means apple is free from allegations. I think there should be a very strict global policy relating to data collection and privacy, otherwise we'll see the whole globalization concept going for a toss as most of the electronics that are produced today have methodology of data collection

[BADecker]

Just reading the title, I thought that this thread had to do with the iPhone market in China, growing to such large proportions that, the babies all got iPhones, and nobody was buying rattles for them any longer.

If the title had been, "China's iPhone Cribs Rattle Markets," I would have thought that the China government was taking iPhones away from babies to keep them ignorant of a lot of topics that get tossed about over the airwaves. They could play with rattles instead.

[Hispo]

Isn't it the same thing that rest of the world has done for Chinese phones? I know there are strong allegations on Chinese company about data collection but this doesn't means apple is free from allegations. I think there should be a very strict global policy relating to data collection and privacy, otherwise we'll see the whole globalization concept going for a toss as most of the electronics that are produced today have methodology of data collection

That is the logic behind the intelligence and data gathering of the biggest goverment of the planet, to them it is not okey to collect information through phones, social media and even OS, unless they are the ones doing it.

In that sense, the government of the United States does not want to have an actual competition, hence they were demanding TikTok to be offered for sale to one of the biggest American based technology corporations, anything for the sake of that information of American citizens not to be stored in Chinese servers.

Soon enough Apple may have a little taste of what Huawei felt back in the day when it got widely forbidden in the west and isolated from Google's services and marketplace.

[Die_empty]

China is a very technological intelligent nation, because of how well they understand and know technology, they know that it is very possible for the iPhone to become a security breach hence the precaution of curbing the use of the American product by their officials. Since they know it is possible, it is good they are taking action against it because America can also do the same and curb the use of a Chinese product if they have reason to believe that it can cause them a security breach one way or another.

The US once accused China of using the telecommunication firm Huawei to gather information from the US. This led to the termination of major contracts with Huawei not only in the US but in other parts of Europe. Other sanctions against Huawei made them lose some market share that was later taken over by Apple. China wants to protect its local firms so the ban is to limit the dominance of iPhones in the Chinese market and give its indigenous phone makers more market share. This move is both economical and political and it will keep going on and on until both countries stop depending on each other for any product.

[blockman]

It's possible that this could just be some revenge from the Chinese government over Apple because since last year, there's the news of them moving out of China. So in response, this could possibly be like the last words that China can tell to Apple. Whether they like it or not, Apple will have to move and it cannot be stopped anymore since they've shown some recoil of their plans of moving outside. I guess that Apple has seen this repercussion of moving out from them. There have been some other countries that do offer cheaper labor and much lighter in terms of policies which Apple is going to like and not just them but also other companies that are sourcing their manufacturing from the mainland. Well, China has to choose what it is going to support and yes, they've got Huawei and also other brands that the CCP can hold and dictate on what they should do aside from just doing business.

[cabron]

China is a very technological intelligent nation, because of how well they understand and know technology, they know that it is very possible for the iPhone to become a security breach hence the precaution of curbing the use of the American product by their officials. Since they know it is possible, it is good they are taking action against it because America can also do the same and curb the use of a Chinese product if they have reason to believe that it can cause them a security breach one way or another.

The US once accused China of using the telecommunication firm Huawei to gather information from the US. This led to the termination of major contracts with Huawei not only in the US but in other parts of Europe. Other sanctions against Huawei made them lose some market share that was later taken over by Apple. China wants to protect its local firms so the ban is to limit the dominance of iPhones in the Chinese market and give its indigenous phone makers more market share. This move is both economical and political and it will keep going on and on until both countries stop depending on each other for any product.

Canada even took the daughter of Huawei's CEO as hostage for 3 years because they saw the company is spying through the Huawei phones.

This time its China's turn to ban iPhones for China government employees because they also see iPhone has a forever mic turned on. Its a wonder why it's only now that they know this when its been tracking iPhone users for time.