iPhones in China -- more decoupling

China ordered officials at central government agencies not to use Apple’s iPhones and other foreign-branded devices for work or bring them into the office, people familiar with the matter said…

The move by Beijing could have a chilling effect for foreign brands in China, including Apple. Apple dominates the high-end smartphone market in the country and counts China as one of its biggest markets, relying on it for about 19% of its overall revenue…

Beijing’s move is likely motivated by both national security and economic concerns, said Paul Haenle, a former China director on the National Security Council under former Presidents George W. Bush and Barack Obama. On the security front, Beijing might be concerned about backdoor access to government-employee data. On the economic front, China would likely welcome the market share gains for domestic manufacturers, he said

Beijing has been urging its agencies and state-owned enterprises to replace foreign technology including computers, operating systems and software with homegrown products they deem safe and controllable.

DB2

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Or, maybe it is pushback for Huawei equipment being banned in several countries?

Steve

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Which is part of the decoupling…

DB2

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Central planning is simply looking for a place to utilize excess capacity. What better place than pocket sized mobile computing. That the population uses them everyday and “state of the art” is readily available for reverse engineering is simply a plus, making it easier and more productive to copy.

iirc, most of the Apple stuff is built in China, so they would be moving volume from one Chinese factory to another Chinese factory. The one substantive difference is Apple US crying to the pols about their rope selling being interfered with, because I am pretty sure management understands this is blowback from the sanctions on Chinese companies imposed by the US government.

Steve

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Well sure, but who cares about pols? China looking inward doesn’t even move the needle for expected outcomes.

… betting that a new Chinese smart phone comes out called the orange, complete with a yPhone interface.

…Also betting the benchmark comparisons will be able to finally describe Apples and Oranges in a way that people will understand.