It is no secret that Apple is earning a good chunk of revenue from its services. However, iPhone users in China seem to be missing out on almost all new Apple Services. At this point in time, Apple users from China cannot access Apple TV+, News subscription and also Arcade gaming.
Until now Apple never really faced this issue in China since it mostly concentrated on selling hardware. However, not things have changed and services are constituting a good part of Apple’s revenue. In other words, selling its services in China will be a big challenge for the Cupertino company.
Thanks to services like App Store, Digital Books, news, video and music, Apple has now come under the scanner of the Chinese government and the censorship that comes along.
“There’s a headwind around services there, and it’s unclear what services can be available,” said Gene Munster, a veteran Apple analyst and co-founder of Loup Ventures. “It points to an issue with China more broadly with how U.S. companies can operate there, and it will likely remain a headwind on Apple services for a long time.”
Interestingly services like iMessage work just fine in China while other paid services like Apple Music and Apple TV+ are not available in the country. Needless to say, the lack of these services in the world’s largest smartphone market will impact Apple’s revenue. The issue is critical especially since Apple is projecting its revenue with a reliance on services.
Apple continues offering services like App Store, Apple Pay and Apple Music in China. However, all the services are operated by a local service provider who in turn is backed by the government. Needless to say, the Chinese government manages to get access to user data.[via Bloomberg]