“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?
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