Chinese Government Shuts Down Apple Online Services: Report
The iBooks and iTunes Movies stores that opened six months ago were suddenly shut down by Chinese regulators last week.Government regulators in China without warning shut down Apple's online iBooks Store and iTunes Movies service, which had opened about six months ago, leaving Apple working with the communist government to try to restart the services. The shuttering of the Apple services occurred last week and came despite permission that Apple was previously granted by the government when the services began there last year, according to an April 21 story by The New York Times.
China's State Administration of Press, Publication, Radio, Film and Television halted the services, asserting its authority and demanding the closings, the Times reported, based on anonymous reports from two people who were familiar with the matter.
Apple has been garnering more and more of its revenue from China the last several years, according to the company's revenue reports. In January, Apple reported $18.37 billion in revenue from China in its first quarter of 2016, which made up about 24.2 percent of the company's $75.87 billion in revenue for the quarter. In the fourth quarter of 2015, Apple reported $12.52 billion in revenue from China, out of a total of $51.5 billion, according to earlier eWEEK reports.
China is Apple's second-largest global market behind the United States.Apple in a statement said that the company hopes to "make books and movies available again to our customers in China as soon as possible." Apple recently even launched its Apple Pay mobile payment services in China as it works to find new customers in a world that is experiencing a slowdown in new smartphone sales and shipments due to decreasing demand for new devices. Many smartphone vendors, including Samsung, have been experiencing the same trend as consumers appear to be satisfied with the devices and features they already have for their use.