According to a report published by the Wall Street Journal yesterday, China has ordered its government officials to stop using iPhones and other foreign-made smartphones. While this is a huge blow to Apple, it seems that China is now aggressively pushing to ban iPhones for official purposes in the country.
The latest report by Bloomberg mentions that Beijing is planning to expand the iPhone ban to more government agencies and state companies. The report states that more state companies and government agencies have asked their employees to not bring iPhones to offices.
iPhone Ban to expand to more govt. agencies
While there is no formal order or written directive on the iPhone ban, it is unknown how many government agencies and state companies are pushing for the ban. Moreover, different agencies and organizations are implementing the ban in different ways. While some agencies have asked their employees to not bring iPhones to work, some have asked their employees to not use iPhones altogether.
Bloomberg’s report explains why China is banning iPhones in government offices. The aim is to “root out foreign technology use in sensitive environments” and “reduce its reliance on American software and circuitry.”
Traditionally, China has always discouraged the use of iPhones in sectors where sensitive data is involved. However, this is the first time the iPhone ban is so evident and it is expanding to more agencies and state companies.
The latest restrictions on the use of iPhones by government officials in China could prove to be negative for Apple which relies on the country for a huge chunk of its sales. If people cannot use iPhones for a major part of the day when they are at work, they would rather buy a Chinese smartphone.
The news has tanked APPL shares since yesterday. While the price fell by 3.6% yesterday, it has declined by another 3.29% today.
According to Bernstein analyst Toni Sacconaghi, iPhone unit sales in China can take a hit of 5% after the ban.
Amid the ban, Huawei is making a comeback in China. CNBC reports that many Chinese retailers have seen an uptick in Huawei’s Mate 60 Pro, a China-made smartphone that costs around $950 and uses a chip from HiSilicon, Huawei’s subsidiary.