"Don't Use Galaxy Either"... China Expands 'iPhone Ban' After Strong Denial

"Order to Use Domestic Phones by at Least 8 State-Owned Enterprises"

Foreign media reported that the Chinese government and state-owned enterprises are expanding bans on the use of foreign brand mobile phones such as iPhone and Galaxy.

On the 15th (local time), Bloomberg News cited multiple sources familiar with the matter, reporting that over the past two months, at least eight out of 23 provinces in China have instructed employees of state-owned enterprises and government departments to use only domestic brand mobile phones. This includes Hebei Province in central China, home to the world's largest iPhone factory, as well as relatively affluent provinces such as Zhejiang, Guangdong, Jiangsu, and Anhui. Additionally, northern Shanxi, Shandong, and Liaoning provinces received similar instructions.

On September 22, the first day of the iPhone 15 launch in China, Chinese customers lined up at the Shanghai Apple Store.
[Photo by Reuters Yonhap News]

This measure is a significant expansion of the ban issued last September, which prohibited civil servants in central government agencies in Beijing and Tianjin from using iPhones for work purposes. At that time, Chinese authorities issued the ban just before the launch of the iPhone 15 series. Bloomberg stated, "It is unclear exactly how many government agencies have issued the directive or how widespread it is," adding, "Some places ban the use of Apple phones at work, while others prohibit their use entirely."

On the 15th, Apple’s stock closed at $197.57, and after-hours trading following the Bloomberg report saw a decline of $1 to $196.50.

Bloomberg analyzed that the background of these guidelines reflects the Chinese government's intention to break free from the influence of foreign technology and promote domestic brands such as Huawei. Bloomberg noted, "This could pose a significant challenge to Samsung and Apple, which are striving to maintain growth in major markets," adding, "Apple manufactures most of its devices in China, and one-fifth of its revenue comes from China."

Earlier, when Bloomberg reported in September about the Chinese government's plan to expand the iPhone ban, the Chinese government outright denied it. At that time, Mao Ning, spokesperson for the Chinese Ministry of Foreign Affairs, stated, "China has not issued any laws, regulations, or policy documents banning the purchase or use of foreign brand mobile phones such as Apple." Nevertheless, Mao publicly pointed out security issues with the iPhone, saying, "Recently, we have noticed many media reports about security incidents related to the iPhone."