How China is systematically attacking iPhone manufacturer Apple
California based technology giant Apple which is the manufacturer of probably the world’s most iconic smartphone – iPhone – has been made to face a tough time in China by the regime. Chinese hostility towards foreign companies is a known fact with MNCs finding it hard to operate in the tightly reined environment created by the Chinese government to control what its citizens consume as far as products and information is concerned. Even though Apple has been attempting to appease China with attempts such as huge investment in Uber competitor Didi Chuxing, it has been finding it difficult to get in the good books of the Chinese government.
China is a strategically important market for Apple as it is the second largest market for its iPhones from which the American company earns a majority of its revenue. Also, the fact that iPhones are assembled in China and carry a “Made in China” tag means that Apple needs to give in to the pressure of Chinese until it finds a suitable alternative which makes it more economical and viable to move the assembly out of China. Apple CEO Tim Cook has at several occasions visited China and tried to strike a chord with the Chinese government. However, Chinese regime has made systematic attacks against the iPhone maker. Let’s take a look at how China has been making Apple’s life difficult in the recent past.
A court in China passed an order stopping Apple from selling two models of the iPhone in Beijing. These models were the iPhone 6 and the iPhone 6 Plus which were said to have been designed replicating a Chinese smartphone by Shenzhen Baili. The smartphone in question was the 100C. Apple appealed against the order and the order has been stayed pending review by the Beijing IP Court.
Some time ago a Beijing court ruled in favor of a Chinese company against Apple allowing it to use the “iPhone” name on its wallets and purses which came as a shock to the Apple fanboys. China earlier shut down Apple’s book service iBooks and movie service iTunes Movies for violating foreign publishing regulations.
In 2012 Apple had to pay $60 million to Proview for settling a case that had been filed over the iPad trademark in China. Proview claimed to have held the trademark since 2000.
It has been a rough ride for Apple in the recent past with Samsung Galaxy S7 dethroning iPhone 6s as the most popular smartphone in the USA and its second-quarter results announcement in April showing the first quarterly revenue drop in 13 years. Matters were made worse by a 26 percent year-on-year fall in smartphone sales in Greater China.