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China Challenge

China moves to widen curbs on iPhone use

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The news: China has told staff at some central government agencies to stop using their iPhones at work, widening existing curbs on their use by state employees, Reuters reported.

The numbers: Staff in at least three Chinese ministries and government bodies were told not to use iPhones at work, sources told Reuters. The news dragged Apple shares 2.9% lower in New York trading overnight, on top of a 3.6% fall on Wednesday. China is one of Apple's biggest markets and generates nearly a fifth of its revenue.

The context: The latest curbs come against a backdrop of tensions between Beijing and Washington and extends a ban imposed more than two years ago due to Apple's strict privacy rules. Apple relies heavily on China for revenue growth and manufacturing. The US company, together with its suppliers employs thousands of workers in China and has also enjoyed strong sales in the country, ranking in third place in overall smartphone shipments. China has increasingly emphasised using locally made tech products, as technology has become a major national security issue for Beijing and Washington.

The source: Reuters


By Prashant Mehra