“When Carl Icahn said he has sold his Apple stock due to worries over its China sales, he wasn’t thinking of a sudden, outright ban on iPhone sales,” Aaron Back writes for The Wall Street Journal. “But the shocking order from Beijing’s intellectual property regulator, stopping sales of iPhone 6 and 6 Plus phones in the city, is nonetheless a reminder of the risks to any foreign technology company of relying too much on China.”
Back writes, “In its most recent quarter, 25% of Apple’s revenue came from the greater China region.”
“It is only the latest incident of capricious and severe regulation by the People’s Republic against Apple,” Back writes. “Evidently, Apple’s $1 billion investment in Chinese ride-hailing service Didi Chuxing, widely perceived as an attempt to curry favor with Beijing, is no guarantee of lenient or even reasonable treatment.”
Read more in the full article here.
MacDailyNews Take: More “investments” required?
SEE ALSO:
No, the iPhone hasn’t been hit with a China sales ban, but Apple is in a sticky situation – June 17, 2016
Beijing regulator orders Apple to stop sales of iPhone 6/Plus models – June 17, 2016
Chinese company sues Apple for alleging ‘copying’ their design in iPhone 6 – June 16, 2016
“Investments” is correct. Like I said before, the “Investment” “Investment” in the Chinese Uber-ish company was just an Organized Crime style method of funneling money to the government. And Apple capitulated. Once you pay the protection money, it will never end.
The Chinese Miracle is starting to crumble and they aren’t going to just sit back and let American companies take over. To paraphrase Steve Jobs, “They’re going to milk American companies for all their worth, then toss them out.”
more unbridled strategic blunders by tim cook et al in the e-suite, think stock grants not think differently
And where is our missing in action corrupt Obozo administration? I would retaliate immediately. I would slap all products from China with a tariff should they look like ‘previous art’ in American invented products. The crappy Chinese phone would have to pay a license fee and fines for looking and working like the original iPhone, which was rectangular, with curved corners, and a flat slab of glass. Not that their piece of crap could ever be sold in the States.
Yet another reason to make Apple Products in the USA.
Those jobs would benefit all American workers.
American jobs matter!
Long range security is the biggest reason, I hope Apple isn’t planning on making cars in China.
one core problem with USA China is that the USA Govt is powerless as it has borrowed 1.2 Trillion dollars from China and without China support the USA Govt would be bankrupt (i.e unable to finance it’s running). that’s why when China bans Google or bullies Apple etc. USA govt practically does nothing (like it doesn’t ban Xiaomi etc).
USA and other Western Govt.s should reign in and stop corrupt spending so that they don’t have to borrow ( politicians giving ” bridge to nowhere ” contracts to their friends, buying $300 screwdrivers, waste everywhere). In my local area a new bridge project sold to the voters as 30 million project has now ballooned to over $100 million ( the small city where I live has generally a ‘no open tender’ policy which leads to all kinds of corruption, which much of the public — which spends more time watching sports or tweeting — seems completely oblivious) .
In my city 80% of some of the city councillors and mayor’s campaign contributions come from a handful of contractors. ( I voted for a mayoral candidate with $8000 in campaign funds — it’s a small city remember — the corrupt mayor had over $100,000 most from contractors. He sold a piece of city waterfront to a contractor for $1 saying the city needed development, 10 years later the contractor was in the papers saying he had made over $1 billion from developing the land… ). If people actually keep track and read audit reports etc they will be TERRIFIED about how their money is spent.
. Western lifestyles with even the SAME LEVEL or better government services I believe could be had for half or less of govt. spending if we supervise it properly (resulting in less borrowing from countries like China, and WAY LESS TAXES).
it’s time for the public to wake up. To be strong we first have to clean house.
note: i gave my city spending as an example fully realizing it’s not all ‘federal’ money (although the feds did contribute tot he bridge etc) but I use it as illustrative example of how politicians in general ‘waste’ money.
i live in Canada now, on an island one and half hours from Seattle and Vancouver.
I love Canada and its generally a well run place with nice people, perhaps too nice as
to illustrate my points further i give you some examples of how Canadian politicians are ripping them off:
—— CUT And PASTE real article:
— government has long been in hot water for building a $2-million tourism pavilion at the 2010 G8/G20 summit media centre in Toronto, which infamously included a ‘fake lake’ that simulates Ontario’s cottage country. The Conservatives spent a record $1.1 billion hosting the events
— Taxpayers fronted $47,000 for a 2010 Tory press conference during which then-Defence Minister Peter MacKay posed for a “hero shot” in a fake F-35 fighter jet built by manufacturer Lockheed Martin, which was brought in from Texas for the special event
–Former International Cooperation Minister Bev Oda and current Finance Minister Joe Oliver seem to share a taste for costly coolers, provided taxpayers are footing the bill. In 2011, Oda expensed a $16-glass of orange juice and a $1,995-stay in the swanky Savoy Hotel during a government trip to London, England, where she also hired a limousine to cart her around at a cost of nearly $1,000 per day.
— Agriculture Canada gave $826,000 to Cardinal Meat Specialists Ltd. in Brampton, Ont. to help produce “a higher quality sausage that is more resistant to splitting or bursting while cooking.”
— In 2013, Defence Research and Development Canada (DRDC) spent nearly $14,000 on a survey that asked Canadians whether superheroes could fly, leap over skyscrapers, see through walls, become invisible and hear whispers from miles away.
—-
THAT is the CONSERVATIVE govt. the new Justin Trudeau’s Liberal apparently is even more open to borrowing and spending.
CBC :
“The first budget from Justin Trudeau’s government finds the Liberals compromising some of their election promises to keep others, laying out a longer and larger string of deficits ”
—
please NOTE i am not trying to beat up on Canada. It’s ranked as having one of the LEAST corrupt governments in the world , one of the best run, just imagine the rest ranked lower than it…
If one were to gather up all the negative articles about Apple one would certainly think Apple is definitely going down the toilet. There’s absolutely nothing to offset all that negative news. However, I do find it somewhat amazing how Jeff Bezos can manage to please Wall Street so easily while Tim Cook can’t do anything right. Everything Tim Cook attempts to do seems to backfire on Apple shareholders. Is Apple really being run that poorly? Is there nothing that can be done to boost Apple’s value?
Apple shareholders are going to look pretty stupid when Facebook becomes more valuable than Apple with less than 10% of Apple’s revenue. It sure looks as though it’s heading that way. A fat P/E of 70 sure goes a long way in creating value and lots of rich shareholders.
Maybe they want Apple to make their new car in China.
So, it’s a COMMUNIST country. Why does everyone seem to forget that.
No surprise.
China: Criminal Nation.
Same old song.
Oops.
Adding capitalist nuances didn’t help at all.