Abiding by Orders, Apple Expands its Business in China

Published By : 01 Mar 2016 | Published By : QYRESEARCH

Apple Inc. has defended its stance against the FBI which is pressurizing the company to hack an iPhone through ‘back door’ that belonged to one of the terrorists involved in the San Bernardino attack. Though the technology giant has been involved in this legal battle in its home ground, it has been quite accommodating while operating in its second-largest market, China. In China, iPhone was launched seven years ago and the company has censored apps and complied with security requirements as demanded by the Chinese authorities. Local user data has been uploaded on servers operated by the government-owned China Telecom. The company further submits to security audits done by the local authorities.

Apple’s Approach in China Pays Off

Apple is among the few U.S.-based technology giants that have been able to flourish in China. The strategy of complying with the demands of Chinese state authorities has led Apple to expand its business across the country. While the sales of Apple products have decreased in the U.S., Japan, and Europe, the company’s business in China was worth US$59 bn last year. China has surpassed the U.S. as the largest buyer of iPhones and has the potential to emerge as the largest market for Apple Pay.

How Long the Good Times will keep rolling for Apple in China?

It has been observed that Beijing is increasingly tightening its noose around the foreign technology companies through strict laws to regulate the Internet and digital hardware. If the FBI prevails in seeking means to hack the iPhone used by the terrorist, this would lead to the Chinese authorities demanding the same. According to industry experts, it will be tough for Apple to defy orders in China where the state authorities would not tolerate a refusal to cooperate with them regarding a terrorism case.

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