Beijing Regulator Orders Apple to Stop Sales of Two iPhone Models
June 17 2016 - 9:10AM
Dow Jones News
BEIJING—Beijing's intellectual property regulator has ordered
Apple Inc. to stop sales of the iPhone 6 and iPhone 6 Plus in the
city, ruling that the design is too similar to a Chinese phone, in
another setback for the company in a key overseas market.
It wasn't immediately clear what impact the order would have.
Some mobile-phone stores in the city said they had already stopped
selling the two models months ago, switching to newer models. Apple
will soon end production of both models, according to a person
familiar with the production plans.
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.
An Apple spokeswoman in China didn't immediately reply to phone
calls and an email Friday. 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.
Apple has the option to appeal the ruling to a higher court,
according to Chinese law.
Write to Eva Dou at eva.dou@wsj.com
(END) Dow Jones Newswires
June 17, 2016 08:55 ET (12:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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