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China has flagged security issues with Apple’s (NASDAQ:AAPL) iPhones while noting that it is not banning purchases, Bloomberg News reported.
The remarks were the first by the Chinese government on the issue, after news reports that authorities were moving to restrict the use of Apple products in sensitive departments and state-owned companies.
“We noticed that there have been many media reports about security incidents concerning Apple phones,” said Chinese Foreign Ministry spokesperson Mao Ning on Wednesday, according to the report.
China intends to expand a ban on the use of iPhones to several state-backed companies and agencies, a signal of growing challenges for the U.S. tech giant in its biggest foreign market and global manufacturing base. Several agencies have started instructing employees not to bring their iPhones to work, the report added.
“China has not issued laws and regulations to ban the purchase of Apple or foreign brands’ phones, Mao noted. Mao added that all companies operating in China are required to abide by its laws and regulations.
The press briefing comes on the heels of Apple unveiling its latest line of new iPhones — iPhone 15, 15 Plus, 15 Pro and 15 Pro Max — and the next generation of Apple Watch.
However, according to Citi, the proposed ban on government employees using iPhones will barely move the needle, as most of the country’s sales are made to consumers rather than to commercial entities, and government purchases are less than 1% of total iPhone revenue in China.
