A report yesterday revealed that China has banned government officials from using iPhones and other foreign technology within government agencies. Now, a report from Bloomberg says that this is only the start of China’s crackdown on iPhone, with a much broader set of restrictions also in the works.
The report explains that China is planning to extend its ban on iPhones to a wide array of “state-owned enterprises and other government-controlled organizations. According to Bloomberg, this crackdown comes as China ramps up its efforts to “root out foreign technology use in sensitive environments” and “reduce its reliance on American software and circuitry.”
Specific details about where and how this iPhone ban will be implemented are reportedly still in the works. As of right now, the report says that “there’s been no formal or written injunction as yet.” The restrictions are expected to vary by different agencies and organizations, “with some forbidding Apple devices from the workplace while others could bar employees from using them entirely.”
The Wall Street Journal reported on Wednesday that a handful of Chinese government agencies had communicated to employees that they could no longer use iPhones for work – or even bring them onto office premises. Bloomberg’s report today seems to say that these restrictions are only the start of the crackdown on iPhones in China, with much more to come.
The iPhone bans in China have already had a significant impact on AAPL stock and have led to concerns among investors. Apple’s stock price fell by 3.6% on Wednesday and is currently down another 3.29% on Thursday.
As we explained yesterday, the iPhone holds a majority share of high-end smartphone sales in China. The chart above from our friends at Six Colors shows Apple’s year-over-year revenue in China and how the number has ebbed and flowed.