Wednesday, August 16, 2017

Apple's New China Dilemma

Apple cannot catch a break anywhere in China.  I used to wonder why they continue to beat their heads up against the wall, thinking it was only money that drove them to put up with the nonsense China throws at them in the name of "national security".  The latest one is a group of 28 app developers who complain that Apple is treating them badly, i.e. They are removing apps from the Apple Store without detailed explanations of why, and charging too much for in-app purchases.  They also don't respond with reasons in Chinese.

This looks like the typical Chinese approach to businesses that have settled in China and actually make money.  Eventually, China drives them into building the industry to compete with their own products, like Intel has done, or they drive them out, as they did with Google.  This is how they get to be world economic leaders.  Anyplace else in the world, they would be in court for this kind of behavior.  But instead, the Chinese build cell phones for everyone.  About the only company that doesn't build most of its cell phones there is Samsung.  We need to understand more about what that means.  Certainly, we can see the national security implications of having all the cell phones not only made in China, but by Chinese companies.  They have the potential to collect intelligence from any of those devices, and probably do.

Yes, Apple competes unfairly with Chinese vendors because they still won't bend a knee to the central government.  Nobody gets away with that for long.  Now that Chinese companies are taking over the cellphone market, they can drive Apple out.

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