Amidst the restriction of the U.S. over Huawei, China has reportedly pulled a UNO reverse card. Yes as per rumors, China is banning iPhones and foreign-made smartphones in government offices. With this, after the freshly launched Mate 60 lineup, Huawei seems to possibly capture the revenue that would have gone to iPhones this time. However, there is another side to the story; while iPhones will be at a disadvantage, Huawei is also not without its own challenges.
China’s iPhone Restriction Rumors:
Why ban iPhone usage in China?
The rumors of China’s decision to ban iPhones and other foreign-made smartphones have already caused a negative impact on Apple’s stock price, causing it to drop quickly. The early news from China claims security problems with Apple products, which made people worry more about their privacy and security.
The Foreign Ministry spokeswoman, Mao Ning, said the ban was because of “many media reports about security incidents concerning Apple phones,” which makes people think again about Apple’s privacy problems. More of a Deja Vu of the claims made by the US government on Huawei phones, right?
Who will be affected by this step?
Considering that China contributes around 20% of Apple’s annual iPhone revenue, it is certain that Apple will face revenue challenges if this decision gets implemented. However, they aren’t the only party facing issues. The Chinese government may also be impacted because Apple is a major employer in the country, with a significant portion of its production based there.
A decline in iPhone sales could lead to reduced production, potentially affecting jobs and employment. With iPhones seeing an immediate drop in sales, it adds pressure on Huawei as well, to step in and fill the economic and technological gap left by Apple.
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Pressure on Huawei
Huawei’s flagship Mate 60 lineup may enjoy increased sales, but it also raises questions about the company. Due to U.S. restrictions on Huawei’s access to advanced computer chips, Chinese buyers might wonder if Huawei can meet the demand for powerful and optimized handsets like Apple, with its in-house manufactured phones and chipsets.
China’s restriction on iPhones, the key takeaway?
China’s iPhone restriction will impact Apple’s revenue and raise allegations about security compromises; the double trouble. Huawei may benefit initially but has to fill up the blank space created by the absence of Apple products. The situation creates a complex scenario for both companies.
In the latest news, China says it hasn’t issued any ban on Apple’s iPhone, which is kind of dramatic. Let’s see where this so-called tech war would impact the other players in the market.