Apple Faces Another iPhone Challenge in China--Update
June 17 2016 - 11:10AM
Dow Jones News
By Eva Dou and Daisuke Wakabayashi
A dispute between Apple Inc. and Chinese regulators broke into
the open after Beijing's intellectual property authority said that
the design of the iPhone 6 and iPhone 6 Plus violate a patent held
by a Chinese company.
The notice by the Beijing Intellectual Property Bureau, dated
May 19, ordered Apple to stop sales of both phones in the city.
Apple said Friday that the order had been stayed while it appeals,
and that all of its phones remain available for sale. Some
mobile-phone stores in the city had already stopped selling the two
models months ago, switching to the current iPhone 6s and 6s Plus
phones.
Apple also said it is appealing the decision.
It wasn't clear what impact the regulator's order would have if
allowed to go ahead. Apple will soon end production of both models,
according to a person familiar with the production plans.
Still, the order marked another setback for the company in a key
overseas market.
The two iPhone models infringe on a Chinese patent for exterior
design held by Shenzhen Baili for its 100C smartphone, the Beijing
Intellectual Property Bureau wrote in a statement on its website
dated May 19. It wasn't clear when the statement was posted online
or when the stay was ordered.
A phone operator at the Beijing Intellectual Property Bureau on
Friday evening said no one was available to answer queries.
It is the latest challenge for Apple in China, its largest
market outside of the U.S. Falling iPhone sales in China was a
major factor in Apple posting its first quarterly decline in
revenue in 13 years in April. China also shut down Apple's iBooks
and iTunes Movies services that month, with regulators telling the
company it didn't have the necessary licenses, according to people
familiar with the matter.
Apple last month announced a $1 billion investment in Chinese
ride-hailing company Didi Chuxing Technology Co., an unusual
investment for the company. Analysts said it was likely made in
part to curry favor with Beijing, as Apple faces challenges in the
country on multiple fronts.
Write to Eva Dou at eva.dou@wsj.com and Daisuke Wakabayashi at
Daisuke.Wakabayashi@wsj.com
(END) Dow Jones Newswires
June 17, 2016 10:55 ET (14:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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