China Bans Govt Officials From Using Apple iPhone For Work

In a move that could hurt Apple's growth in the country, China has banned government officials from using iPhones for work.

Employees at China's central government bodies have been ordered not to use foreign-branded devices or iPhones for work.

Source : Getty

In a move that could hurt Apple's growth in the country, China has banned government officials from using iPhones for work, The Wall Street Journal reported on Wednesday. Employees at China's central government bodies have been ordered not to use foreign-branded devices or iPhones for work or bring them to the office, the report added, citing people familiar with the development.

The orders were given by superiors to their staff in the past few weeks and there is no clarity on how widely the orders were being actively distributed, the WSJ report added.

There were no names apart from Apple, in the list of banned foreign smartphone makers. China's State Council Information Office could not be immediately reached for comment and Apple did not respond to a request for comment by news agency Reuters.

This development comes exactly a week before Apple's much-awaited iPhone 15 series is slated to launch in California and globally. The Chinese government's move is being seen as a way to encourage the use of more indigenous brands in the country. But it is definitely going to hurt Apple which is set to unveil iPhone 15 lineup soon. Also, China is the second-biggest market for Apple, after the US. 

Huawei Mate 60 Series May Eat Into Apple's Share 

Meanwhile, analysts with Bank of America (BoA) are predicting that the Chinese tech behemoth Huawei's new Mate 60 series may eat into Apple's market share in China. “This launch marks a significant milestone for the company after being cut off from critical supply due to US sanctions in 2019,” the BoA analysts wrote, referring to sanctions that banned American companies from selling software and equipment to Chinese firms.

Apple Saw Biggest Growth In Declining China Smartphone Market In Q2

It is pertinent to note that smartphone shipments in China fell 4 per cent YoY in the second quarter (Q2) of 2023, in the wake of weak demands resulting from economic headwinds. Oppo and Vivo grabbed the top two spots with 18 per cent market share each and Apple was a close third with a share of 16 per cent. Apple also witnessed the biggest YoY growth in Q2 in China as it offered generous price cuts for the iPhone 14 series during the 618 festival period, according to Counterpoint Research.