Apple has been told by Beijing's intellectual property regulator to stop sales of the iPhone 6 and iPhone 6 Plus in the city.
The two iPhone models infringe on a Chinese patent for exterior design held by Shenzhen Baili for its 100C smartphone, the Beijing Intellectual Property Bureau wrote in a statement on its website according to the WSJ.
As we reported in May, China is now conducting security reviews of foreign tech products, and we remind everyone of what president Xi Jinping said about stopping its reliance on foreign technology:
According to the New York Times, Xi's outlined the direction in which he is planning to take China as it relates to technology and cyber security. "One viewpoint holds that we must close ourselves off, make a fresh start, thoroughly shake off reliance on foreign technology and rely on indigenous innovation to pursue development. Otherwise, we would always follow in the footsteps of others." Xi said. Adding that China must find a middle ground and determine "which things can be imported but have to be secure and controllable; which things may be imported, digested and absorbed for re-innovation; which things can be developed in collaboration with others; and for which things we must rely on our own strength and indigenous innovation."
From the WSJ
Beijing’s intellectual property regulator has ordered Apple Inc. to stop sales of the iPhone 6 and iPhone 6 Plus in the city, ruling that the design is too similar to a Chinese phone, in another setback for the company in a key overseas market.
It wasn’t immediately clear what impact the order would have. Some mobile-phone stores in the city said they had already stopped selling the two models months ago, switching to newer models. Apple will soon end production of both models, according to a person familiar with the production plans.
The two iPhone models infringe on a Chinese patent for exterior design held by Shenzhen Baili for its 100C smartphone, the Beijing Intellectual Property Bureau wrote in a statement on its website dated May 19.
An Apple spokeswoman in China didn’t immediately reply to phone calls and an email Friday. A phone operator at the Beijing Intellectual Property Bureau on Friday evening said no one was available to answer queries.
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We will await the response from Apple, whether it's given in a statement or just discussed in the next 10-Q in regards to how this will impact the company.
Still we find this move by China fascinating given Tim Cook's recent 'peace-making' visit...
Of course, Tim Cook has reached out to his personal PR man - Jim Cramer - to explain that this is "not true" but the brief bounce in AAPL is fading...