Apple phones still sold in China despite ban

Shoppers check out the iPhone X at an Apple store in Beijing, China. (File/AP)
Updated 11 December 2018
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Apple phones still sold in China despite ban

  • Apple has recently been overtaken by other competitors in China
  • Apple's high prices leave their products out of reach for many users

BEIJING, China: Apple stores in China continued with business as usual Tuesday despite a court-ordered ban on iPhone sales, but the US tech giant faces a growing nationalist backlash over the US-sought arrest of a Huawei executive.
According to US chipmaker Qualcomm, which requested the ban, the Fuzhou Intermediate People’s Court ordered four Apple subsidiaries to stop selling older models of the iPhone, including the 7, 7 Plus, 8, and 8 Plus.
But Apple stores contacted by AFP in Beijing, Shanghai and Fuzhou said they were still selling those older models — confirming a company statement that all remain available.
Sales staff at a Beijing Apple store said they had not yet received any internal notices about the court injunction on iPhone sales.
“If the ban is ultimately imposed, there will be no Apple products under 6,500 yuan ($940) in China,” noted Wang Xi, a senior market analyst at research firm IDC.
That would give Chinese smartphone brands, such as Huawei, “more opportunities in the high-end market,” he told AFP.
Qualcomm’s request to halt iPhone sales is part of a long-running patent dispute with Apple.
Separately, Apple is also the target of nationalist sentiment over the arrest of Huawei’s chief financial officer in Canada at the behest of the United States on alleged Iran sanctions violations.
The Chinese government has condemned the arrest and demanded her release.
Some Chinese netizens and companies have also turned against Apple.
“What if China banned Apple the way the US has banned Huawei?” wrote one user on Twitter-like Weibo in a post that garnered more than 500 likes. “What if Apple lost its manufacturing center in China?“
Leaked company documents announcing rewards for Huawei purchases and penalties for owning Apple products are also circulating on Chinese social media.
A tech firm based in southwestern China, Chengdu RYD Information Technology, said it would reward employees who bought Huawei products with subsidies in an internal notice that it later confirmed via its official WeChat account.
The Shanghai Nanchong Chamber of Commerce confirmed that it too was offering subsidies for Huawei smartphones, and that staff and executive members of the business group would “lose their positions” if found with Apple products.
It seems that “general sentiment is gradually turning to against Apple and support Huawei now,” due to recent events, such as Meng’s arrest and the US-China trade war, said Wang.
China is a crucial market for Apple, but is has been overtaken by Chinese competitors in recent years.
According to a 2018 financial report, China, Hong Kong and Taiwan were together Apple’s third largest market by net sales, after the Americas and Europe.
Apple chief executive Tim Cook has also made regular visits to China, and has touted the company’s inroads in the Chinese market as well as its manufacturing there.
But Apple’s premium-priced products remain out of reach for many users, increasing the appeal of more affordable phones produced by local companies.
Apple has the fifth largest market share in China, trailing behind Huawei, Oppo, Vivo, and Xiaomi, according to data from IDC.
Qualcomm, the leading supplier of chips for mobile devices, serves several Apple competitors in China, including Huawei, and has been in a prolonged legal battle with Apple in recent years.
Apple has claimed that Qualcomm is abusing its market power over certain mobile chipsets in order to demand unfair royalties, joining a string of antitrust actions against the chipmaker.
Qualcomm has countersued Apple and earlier this year escalated its legal fight, claiming the iPhone maker stole trade secrets and shared them with mobile chip rival Intel.
According to Qualcomm’s US lawsuit, Apple’s goal was to buy mobile chips from Intel instead of depending on Qualcomm.
An Apple statement to AFP called Qualcomm’s effort to ban iPhone sales in China a “desperate move by a company whose illegal practices are under investigation by regulators around the world,” and added that “we will pursue all our legal options through the courts.”


Saudi Arabia and UAE launch a new joint cryptocurrency

Updated 20 January 2019
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Saudi Arabia and UAE launch a new joint cryptocurrency

  • The cryptocurrency will be limited to banks during its first stages
  • The program will also help the two countries evaluate the monetary policies of a centralized currency

Saudi Arabia and the UAE have launched a joint cryptocurrency during the first meeting of the Saudi-Emirati Coordination council Saturday in Abu Dhabi, UAE’s national press agency WAM said.

The cryptocurrency will be limited to banks during its first stages, until the governments have a better understanding of how Blockchain technology operates cross-borders.

The currency operates on the use of a “distributed database between the central banks and the participating banks from both sides,” aiming to protect customer interests, set technology standards and assess cybersecurity risks. The new program will also help evaluate the impacts of a central currency on monetary policies.

During the meeting, representatives of Saudi Arabia and the UAE also signed the Joint Supply Chained Security Cooperation program, which tests the two countries abilities to provide vital supplies during times of crisis and national emergencies, as well as share expertise and knowledge in the field.

All 16 members of the executive committee of the council followed up on the execution of the initiatives mentioned in the Strategy of Resolve.

Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports, improving airports to make it easier for people with disabilities to travel, creating a financial awareness program for children aged 7-18, starting a joint platform to support local SMEs, and the integration of civil aviation markets,

The committee was headed by Mohammad bin Abdullah Al-Gergawi, minister of cabinet of affairs and the future of UAE, and Mohammed bin Mazyad Al-Twaijri, minister of economy and planning in Saudi. The committee will also monitor the implementation of the initiatives.