China Expands iPhone Ban as State-Backed Firms Urge Staff to Switch Devices

Several Chinese state-backed organizations and government entities have recently expanded the ban on Apple iPhones and other foreign devices among their staff, promoting the use of local brands. This move aligns with China's longstanding goal of reducing dependence on foreign technology, pushing state-affiliated entities to adopt domestic software and promote local semiconductor chip manufacturing. Multiple state firms and government departments in at least eight provinces have reportedly directed employees over the past month to opt for local brands instead.

China's efforts to curtail the use of foreign technologies have been ongoing for more than a decade. This recent extension of the ban includes instructions from various state-affiliated entities and government offices across provinces like Zhejiang, Shandong, Liaoning, and Hebei. Hebei is home to the world's largest iPhone factory.

This move follows earlier reports from September, where staff in multiple ministries and government bodies were instructed not to use iPhones at work. While Apple has not responded to requests for comments, this latest development underscores China's commitment to promoting domestic technologies and reducing reliance on foreign products.

In a broader context, Apple has been diversifying its production away from China. Recent reports suggest that Apple is shifting product development resources for iPads to Vietnam, collaborating with China's BYD, a key iPad assembler. This marks the first instance of Apple moving New Product Introduction (NPI) resources to Vietnam for a core device.

Additionally, Apple's iPhone 15 series has faced challenges in the Chinese market, with reports of discounts offered by local e-commerce platforms. Analysts attribute this to weaker sales compared to its predecessor, with a 4.5% decline in the first 17 days after the market launch, according to Counterpoint Research. This trend aligns with China's push to boost the adoption of domestic smartphone brands.