Apple Incorporated ran into trouble in China due to problems with patent dispute.
The unlimited prospects of Apple Inc. in China ran into a problem as the world's top two in economy handed in a series of setbacks. All Western companies ran into the same strict regulations in People's Republic of China. The tech giant has begun to tighten the regulations on Western companies, Wall Street Journal reported.
A little known company that's just starting out, Shenzhen Baili, won the patent dispute against Apple Inc. The company won the injunction based on a patent that covers the design of smartphones. This includes Apple's iPhone 6 Plus and iPhone 6. However, Apple says that the order had been stayed. The appeal have been pending and the sales was unaffected by the dispute, Tech n' Buzz reported.
The growing challenges faced by Western companies in China are due to the rulings. Chinese companies grows bigger and more mature. They are becoming into stronger competitors. The regulators insist increasingly that companies from outside China play by rules set in Beijing.
Apple has been a favorite brand of Chinese officials because it is geared for consumers. Not only the officials, but of all China. This was the rumored reason why Apple Inc. seemed to be immune from scrutiny which the Chinese officials focused on companies that make sensitive equipments like routers and servers. The regulators thought about how Apple could sell mobile content while other foreign countries could not and this was pointed to the love for iPhones of the Chinese officials.
However, under the administration of President Xi Jinping, China has been stricter in looking at the contents and technologies of all the foreign companies including Apple Incorporated.
After the latest patent ruling, China shut down iBooks and iTune Movies services. So, Apple's sales in China fell after a rapid growth. China is Apple's largest marketplace outside United States. This was the first quarterly revenue decline of the company for 13 years.
