China is making life difficult for Apple ahead of the release of the new iPhone. It isn’t a coincidence.
, made without much fanfare and ahead of its expected schedule, coincided with a visit to China by US Commerce Department secretary Gina Raimondo, which appeared to be deliberate.. That may also not be a coincidence.
Today that share is almost 20 per cent, with most of the increase attributable to its sales in China, where the lack of access to advanced semiconductors caused Huawei’s smartphones business, once the global market leader, to shrivel. Apple does have some offsetting leverage that will presumably deter Beijing from actively advocating a switch by consumers to Huawei’s products. It employs millions of urban Chinese workers in its iPhone supply chain, with China the core manufacturing platform for its global business.At a time of high urban unemployment, particularly for younger workers, and dwindling export revenues, the authorities probably don’t want Apple’s presence within China to shrink too quickly.
For Apple, the developments underscore the risks it has created for itself in this post-pandemic environment of concern about the resilience of supply chains and heightened geopolitical tensions. The Biden administration has added to layers to the sanctions on China’s access to technology and enlisted the support of its allies to reinforce their effectiveness.