China Widens iPhone Ban, State Firms Urge Staff to Drop Apple Devices: Report

More Chinese agencies and state-backed companies across the country have asked their staff to not bring Apple iPhones and other foreign devices to work, Bloomberg News reported on Friday, citing people familiar with the matter.

This move underscores China's ongoing efforts to bolster its domestic technology industry and reduce reliance on foreign technologies. State-affiliated firms, including banks, have been encouraged to adopt local software and significant investments have been made to promote domestic semiconductor chip manufacturing.

China's Push for Technology Autonomy

In the last month or two, multiple state firms and government departments across at least eight provinces have directed employees to switch to local brands. This initiative is part of a broader strategy that China has been pursuing for over a decade. In December, smaller firms and agencies from lower-tier cities in provinces such as Zhejiang, Shandong, Liaoning, and central Hebei, which is home to the world's largest iPhone factory, issued similar verbal directives, according to the Bloomberg News report.

Apple's Response and Production Shifts

Apple has not immediately responded to Reuters' request for a comment on the matter. However, Apple is also shifting its production strategies. Earlier this month, it was reported that Apple is moving key iPad engineering resources to Vietnam. This marks the first time the tech giant has reallocated such vital resources for a core device outside of China. Engineering verification for test production of an iPad model will commence around mid-February, with availability expected in the second half of the next year.

Market Response to iPhone 15 Series in China

Despite Apple's strategic moves, its latest iPhone 15 series has been met with a lukewarm response in the Chinese market. Chinese e-commerce platforms like PDD Holdings' Pinduoduo and Alibaba's Taobao have been offering steep discounts on the new series, with some models being sold at up to CNY 900 ($123 or roughly Rs. 10,229) below the retail price. Analysts have noted that the iPhone 15 is not performing as well in sales in China when compared to its predecessor, with Counterpoint Research indicating a 4.5 percent decline in the first 17 days after its market launch.

As tensions between the U.S. and China continue to influence the technology sector, China's concerted push to reduce its dependence on foreign tech is reshaping the landscape for global tech giants like Apple. The company's response, including diversifying its production and reallocating resources, indicates a strategic pivot in an increasingly challenging market. The dynamics of China's technology policies and market responses will be critical for industry observers and stakeholders to monitor as they evolve.