Apple Inc. (NASDAQ:AAPL)’s iPhone future in China could be thrown into disarray, after the country’s State media alleged that the phone could be used for spying purposes. The state media highlighted the phone’s location tracking feature that it says can be used to gain access into the countries broader situation, as well as ‘State Secrets.’
“The country’s state-run TV station calling the smartphone’s location tracking feature a ‘National security Concern.’ It was even quoting research that said those with access of this location data could gain knowledge of the broader situation in China or even ‘State Secrets’,” said Fox’s Business News’ Jo Ling Kent.
Apple Inc. (NASDAQ:AAPL) in response to the allegations assured its customers that the tracking feature cannot be used to track their activities. Apple in Its Chinese website reiterated it had never worked with any government agency for the purpose of creating a backdoor in its products and services. The tracking function is normally used to speed applications while also giving direction to iPhone users while driving, to avoid traffic
Apple Inc. (NASDAQ:AAPL) finds itself in the same spot with the likes of Google Inc. (NASDAQ:GOOG) and Facebook Inc. (NASDAQ:FB) on allegations of carrying out spying activity in China. Spying allegations have been on the rise in the recent past after the U.S government indicted five Chinese military officers on allegations of hacking into American companies.
Last month the People’s Daily newspaper reported that Apple, Microsoft Corporation (NASDAQ:MSFT), Google Inc. (NASDAQ:GOOG) and Facebook Inc. (NASDAQ:FB) had cooperated in a secret U.S program carried out to Monitor China. Apple troubles continue in China after officials told state-owned wireless carriers to reduce expenses spent on advertising and devices such as those from Apple Inc. (NASDAQ:AAPL).
There has also been suggestion that there will be a reduction in subsidies for high-end devices like iPhones or Samsung products, a move that would make this product extremely expensive. The move is expected to benefit local phone makers like Xiaomi as their products would essentially be cheaper.
Apple Inc. (NASDAQ:AAPL)’s Chief Executive Officer, Tim Cook, has already apologized to Chinese customers and pledged to improve its customer service in the country.