It is no secret that US-China relation is strained. Now, China has reportedly banned government employees from using iPhones. Government officials are learning about the ban in meetings and chat groups. The move doesn’t come as a surprise. Last year, the US banned the use of Huawei and ZTE telecommunications equipments. Furthermore, the US Army and Navy banned its personnel from using TikTok a couple of years ago.
Following the news of the ban, Apple shares plunged by 3.6%. The WSJ report says that Chinese officials now use smartphones from domestic brands such as Huawei and other major companies. It is evident that China wants to send a strong message. The country is looking forward to reducing dependencies on foreign companies such as Apple.
Ironically, China is a significant market for Apple. It accounts for nearly one-fifth share of total sales. This may be the reason for Tim Cooks high-profile visit to China in March this year. The ban could domino effect on other “foreign” companies from China. Major companies, including Apple, are shifting some operations to other countries, such as India and Vietnam. However, the process is likely to take its sweet own time. Until then, a large part of Apple’s manufacturing will continue in China.
Apple has Started Shifting Supply Chain Out of China
It looks like China wants to send a stronger message to American companies. The ban on iPhones for employees should be timed well, days before the upcoming iPhone 15 launch. Previously, the country has banned Google, Facebook, Twitter, Instagram and several books. Meanwhile, countries like India have banned several Chinese apps, including TikTok.
Apple’s hardware partner, Foxconn, has ramped up production in India. Company’s top brass, including Tim Cook, have visited India to concrete its relations with the government. Recent Bloomberg report claims that Foxconn, Pegatron, and Wistron (Apple’s primary manufacturing partners) are working on manufacturing the iPhone 15 from India. What do you think about Apple’s prospects in China? Let us know in the comments below.