Apple Facing Challenges in Beijing court
Apple’s challenges increase as Beijing court ordered Apple to stop selling two models of its smartphones; iPhone 6 and 6 Plus, in China. The order was given by Beijing’s intellectual property protection Court, which claims that iPhone 6 and 6 Plus has a similar design to a Chinese company’s smartphone. According to the news, a case was filed by Shenzhen Baili against Apple claiming that Apple’s iPhone 6 and 6 Plus looks identical to its 100c model. An interesting fact is that the order was issued in May but is brought up by Chinese media this month.
The Beijing court has stayed the order as Apple appealed for review. The order now stays pending review by the intellectual property court. However, still the news got Apple’s stock with surprise and according to the news, Apple’s stock fall by 2.3% as the news emerged.
This is the second time this year that Apple lost a case from a Chinese company. Earlier this year, the tech giant lost a case from a Chinese company as a Chinese court ruled that the company can use iPhone trademark on its leather products.
It is not a good year for Apple because Apple is facing many challenges, most of which are due to Chinese companies. Earlier this year, Apple was ordered to suspend its iTunes movie service in China. This was a major setback for the tech giant as iTunes is the second major service through which Apple earns revenues.
Despite the challenges Apple faces in China, it is still the largest market for iPhones outside the US. According to Apple, China is still a key market for Apple’s products. Apple recently invested $1 billion in a Chinese ride-hailing service to increase their reach to Chinese target market. According to the people close to the matter, the investment was made to reduce the Governmental regulations imposed on Apple.
Here’s a closer look to how Apple responded to the news:
Apple’s CEO Tim Cook while responding to the news said, “iPhone 6 and iPhone 6 Plus, as well as iPhone 6s, iPhone 6S Plus and iPhone SE models, are all available for sale today in China. We appealed an administrative order from a regional patent tribunal in Beijing last month and as a result, the order has stayed pending review by the Beijing IP Court.”