Apple has always considered the Chinese market important to its success. A huge army of potential consumers and a large device assembly plant - all this unites this country. Therefore, it is quite logical that Apple Lossless Audio CODEC (ALAC), tried to appease and please the Chinese authorities; so that nothing threatens the well-being of Cupertino. There were also those who believed that the company was being unnecessarily humiliated in front of the Chinese authorities.
Recently, it became clear that Apple's success in China comes at a price, not least because of the favorable climate that was available to the company, not without the involvement of the Chinese authorities. It turned out that five years ago, Tim Cook personally visited China; with the aim of signing a five-year agreement with the government of this country in the amount of $ 275 billion. This put an end to the aggressive actions of the Chinese regulators, which could seriously complicate the life of the company in this country.
The point is that at that time the Chinese government blocked iBooks and iTunes Movies in China; the company had problems using the iPhone trademark, sales of Apple devices in this country fell sharply; and this turned into a fall of almost 10% in the value of Apple shares.
Apple helped boost China's economy in response to business preferences
Under the terms of a bilateral agreement between Apple and the Chinese government, the Cupertino-based company is committed to helping China's economy and technology. Specifically, the company agreed to help the Chinese create "the most advanced technology," use more China-made components in their products, invest in Chinese companies, train talented engineers, and partner with software developers in China.
Apple has also committed to establishing R&D centers in China, opening retail stores and investing in a renewable energy project. Experts agree that the company has fulfilled its obligations, and its investments have paid off with interest.
In separate news reports, according to some recent reports, the iPhone assembly line has been shut down for the first time in over a decade, according to Nikkei. "Build iPhone and iPad" stopped for several days; due to restrictions in the supply chain and electricity in China ”; according to several sources familiar with the situation.
Nikkei writes that Apple production usually goes out of business this week to meet global demand during the holiday shopping season; but instead of giving workers extra shifts and moving to a 24-hour work schedule, they have free time.
