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News > World

Apple Profits Dive After China Bans Its Mobile Services

  • People line up outside an Apple store as iPhone SE goes on sale in China, in Hangzhou.

    People line up outside an Apple store as iPhone SE goes on sale in China, in Hangzhou. | Photo: Reuters

Published 23 April 2016
Opinion

Apple is expected to post its first-ever quarterly drop in iPhone sales, to about 50 million units, reflecting a saturated global market.

The blocking of Apple mobile entertainment services in China poses fresh challenges for the tech company as it prepares to report its first-ever drop in iPhone sales.

The news on Thursday that Apple's online book and film services had gone dark in China, the company's second-largest market by revenue, came at a vulnerable moment for the company. Apple executives have said that iPhone sales will fall for the first time in the company's second quarter, and the results for that quarter will be released on Tuesday.

The New York Times reported on Thursday that a state regulator demanded Apple halt the service. The move came after Beijing introduced regulations in March imposing strict curbs on online publishing, particularly for foreign firms.

Apple has a strong track record of working with officials in China, where it has launched a series of services including mobile payment Apple Pay, but some analysts questioned whether the company may receive a chillier reception in the future.

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