iPhone ban in China could also affect Chinese suppliers
China’s ban on public personnel using iPhones is expected to negatively impact all iPhone-related companies.
The American newspaper Wall Street Journal (WSJ) stated that employees of government-affiliated institutions and organizations in China were instructed not to use Apple iPhone model smartphones and models of other foreign brands to work and not to bring them to the workplace.
The news included the claim that Beijing has restricted the use of iPhones by officials in some critical public institutions for years, and that the latest instruction has spread the practice.
The move is seen as part of the Beijing administration’s recent efforts to reduce foreign dependence on technology and increase cybersecurity.
IT HAS THE HIGHEST PARTICIPATION WITH 22 PERCENT
It should be noted that China’s measures came after similar bans imposed by the United States on Chinese technology company Huawei and social media platform TikTok. Despite tensions between the US and China, Apple has the largest share of smartphone sales in China at 22 percent.
The company produces a significant portion of its smartphones in China through subcontractors and generates 19 percent of its revenue in the Chinese market.
On the other hand, there is a possibility that this ban will negatively affect chip companies, technology companies and sub-industrial companies that supply parts and products to the iPhone in China.
‘IT HAS NO SIGNIFICANT EFFECT ON IPHONE REVENUES’
Asian markets expert Süleyman Mete Özbalaban predicted that the decline in demand from public personnel in China will not have a significant impact on iPhone revenue.
However, Özbalaban claimed that Huawei produced a system called HarmonyOS instead of iOS and that China appears to use this system.
Özbalaban, therefore, stated that once this system comes into force, prohibiting the use of the iPhone by public personnel could be the first stage in preparing the environment for Huawei’s new system.
Özbalaban expressed that therefore the demand for iPhone may decrease significantly and said that China is the largest phone market in the world.
In this sense, Özbalaban pointed out that all iPhone-related companies may be negatively affected by China’s ban. (AA)