Apple is one of the biggest technology companies in the world, but it may be a matter of time before they lose that position. China continues to fight the tech company tooth and nail wherever they can, as the iPhone can no longer be sold in Beijing as of today. The reason is a design patent infringement of Shenzhen Balli.
This news is kind of interesting, as it goes to show how being a technology giant does not make one immune to setbacks. Apple learned that the hard way, as their iPhone 6 and 6 Plus infringe patents on Shenzhen Balli’s 100C smartphone. As a result, these phones can no longer be sold in the city of Beijing, which is a significant setback for the company.
Despite this decision being made in May, the ruling did not go into effect immediately. Apple will appeal this decision, and continue to sell both iPhone models as long as the court continues to review their request. It remains to be seen what Apple can gain from appalling, though, as patent infringement is not a ruling that is often reversed.
It is not the first time the technology giant is facing a setback in China either. The company has lost a different dispute against a Chinese manufacturer wanting to use the iPhone name. Moreover, Apple’s iTunes Movies and iBooks services shut down in April of 2016. Additionally, Apple Pay continues to lose ground compared to Alipay in the region.
It is no secret the Chinese government is cracking down on foreign players offering goods and services to residents. In February of 2016, the government passed a rule which requires federal approval for foreign companies providing online content. A similar ruling will soon go into effect as far as mobile games are concerned.
That being said, Apple is looking at other ways to strengthen its position in China. The company has revealed their plans to invest US$1bn in Didi Chuxing, the rival of Uber China. Whether or not this investment will be of any benefit to Apple, remains anybody’s guess right now.
Source: CNN Money
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