Apple Inc. (NASDAQ:AAPL)’s Resistance To FBI’s Dictate Could Help Increase Sales Of iPhone 7 In China


Apple Inc. (NASDAQ:AAPL)’s stand against Court’s decision to hack terror suspect, Syed Farook could actually turn positive for its business.

One reader from China commented that Apple CEO, Tim Cook’s action is grabbing much interest and approval in the South Korean as well as in the Chinese media. As hi-tech companies succumb to governmental pressure in East Asia, Apple has come across as a beacon of integrity.

Argus Insights CEO John Feland said the move could help in sales of the upcoming iPhone 7. Apple could profit enormously in the huge Chinese market where the organization is in stiff competition with two prominent Chinese mobile phone makers, Huawei and Xiaomi respectively.

In Feland’s opinion, Apple’s policy would result in folk to upgrade or shift to Apple or come back to Apple. He added, particularly in other markets where privacy issues are paramount it will become a major advantage to Apple.

As opposed to Alphabet Inc (NASDAQ:GOOGL) and Facebook Inc (NASDAQ:FB), who generate revenue by collecting data on their customers, Apple’s revenue is mainly derived from hardware sales. A new reputation as a promoter of customer privacy will definitely help the business. Cook’s criticism of FBI’s move was at the time Apple launched Apple Pay in China

Apple Pay is being launched in China with much press fanfare. Apple’s stance in favor of customer’s privacy is likely to give Apply Pay an advantage even though presently it’s far behind its competitor AliPay.

Daniel Matte, an analyst from market research firm Canalys, argues it’s a marketing advantage for Apple to reiterate their privacy as well as their security ideals. In the long run, any backlash against Apple will be short-lived, and their commitment to take care of their customers will be more admired and appreciated.

Apple’s move to challenge a court order to unlock an iPhone of one of the shooters in San Bernardino killings has global implications.

Tim Cook dubbed the implications of the American government’s request “Chilling.” He added the demand would require the iPhone maker to develop software to bypass the phone’s security software. The end result would be a tool that could be misused by hackers to obtain data from all iPhones. Authoritarian regimes such as China and Russia may solicit more access to mobile data should Apple Inc. (NASDAQ:AAPL) have to obey the FBI’s demand.