Tag: China

Multiple reports claiming iPhone sales decline of about 10 percent year-over-year. This might be caused by increased competition by Huawei and China government iPhone sales ban.

References:

• Chinese iPhone sales fell 10%, as Huawei reemerges as competitor
• Piper Sandler reduces Apple's Q1 2024 earnings estimates, citing weak demand in China

Apple seems to finally adopted Chinese rules for App Store. Now proof of a Chinese government license is required to be listed on Chinese App Store. License could be acquired by having legal entity in China or by partnering with Chinese publishing company.

This regulation might affect app availability in China.

References:

• Apple Adopts Tighter Chinese App Store Rules, Closing Foreign App Loophole
• Apple complies with Chinese app law after threat to X, Instagram, and more

According to Reuters Apple is not yet listed as company which complies with new regulations on mobile app stores. Notably, Samsung is already on the list.

It is not yet known, if developers will need to provide additional information to Apple.

No comments from Apple were available at the time of writing.

Reuters: China lists mobile app stores that comply with new rule, but Apple missing

Reference: Apple still not complied with Chinese App Store law, as others do [U]

China government ban on foreign electronic devices might not affect plans on Apple making iPhone generally available in China.

AppleInsider reports that China government provided comment on device ban.

In a statement obtained by AppleInsider and other venues, the China foreign ministry has officially stated that "products and services of any country are welcome as long as they comply with China's laws and regulations."

AppleInsider

Also, China Mobile denies allegations that company plans to stop selling iPhones in China.

Morgan Stanley analysts claim that China iPhone ban will have much smaller effect on Apple than other companies anticipate.

"Said differently, while China is critical to Apple's success, Apple is also critical to the Chinese economy," continues Morgan Stanley, "and therefore while the potential for a broad decoupling between Apple and China in this multipolar world clearly exists, we don't believe recent headlines are necessarily foreshadowing this 'worst case' scenario."

Morgan Stanley also notes that it assumes "most Chinese government officials... already own a smartphone from domestic OEMs." So the banning of iPhones could have even less effect than it might have done.

AppleInsider

References:

• iPhone 15 still expected to launch in China despite government bans [U]
• China breaks its silence on iPhone ban rumors
• Investors are overreacting to China iPhone ban news, says Morgan Stanley

iPhone and other foreign technology devices are now banned for use by Chinese government employees. As of now it is not known if this ban is actually enforced, but there are reports that employees are recommended to switch to local smartphone brands.

More agencies and state affiliated companies are expected to have similar bans soon.

There are varying reports on how much this ban might affect iPhone sales in China. Analysts predict sales drop from 500k (which has almost no impact) to 20M units.

The Wall Street Journal: China Bans iPhone Use for Government Officials at Work

Reuters: China moves to widen state employee iPhone curbs

Bloomberg: China Seeks to Broaden iPhone Ban to State Firms, Agencies

Reference:

• China bans government officials from using iPhones at work
• China widens ban on officials using iPhones but isn't enforcing it
• China’s iPhone ban expected to expand to more government agencies soon
• China Expanding Government iPhone Ban
• 20M iPhone sales could be lost to China ban and Huawei competition, analysts forecast
• China's iPhones ban seen as effort to restrict Apple's access to market
• China government iPhone ban will have almost no effect on sales, says analyst

New China law requires mobile application developers to file business details in order to distribute apps in China application stores.

Android applications stores started implementing required changes. Apple App Store apparently already supports all the requirements.

References:

• Android app stores comply with latest China law; Apple appears to have taken no action

Speculations arise that China government will require application developers (publishers, to be more specific) to establish local business organization in China or partner with local publishing agency.

This might significantly impact indie developers and small businesses targeting China market from outside.

Apple might find a way to present itself as single publisher allowing developers to avoid this registration process. No comments are available so far on this topic.

Reference: China to Require Apps to Register With Government

AppleInsider refers to Canalys' report claiming that iPad shipments are more than doubled year over year in 2023 Q1.

A report from Canalys seen by AppleInsider shows that shipments of the iPad more than doubled YoY in China for Q1 2023. The tablet market was particularly strong for the quarter, with 38% growth in total.
...
The report says Apple's market share also jumped by about 13% to 38.4% YoY.

AppleInsider

Reference: iPad shipments more than doubled in China for Q1 versus 2022