From an article in the December Atlantic by James Fallows, on what he sees as a worrisome political screw tightening in China:
This spring, the Chinese government blocked Apple's iTunes movie and iBooks services and apps in China. Soon thereafter, Apple reported its first global revenue decline in 13 years, in part due to plummeting income from China, and saw its market capitalization drop by $40 billion. The Chinese government's motive in cracking down on Apple was probably political rather than crudely commercial. As an analysis in Variety pointed out, the rising popularity of streaming video on iPhones and other devices made the Apple sites important portholes for movies, documentaries, and other material from the outside world. But regardless of rationale, the effect was to damage Apple relative to its Chinese competitors (notably a smartphone company called Xiaomi), much as the politically motivated crackdown on Google damaged it relative to its main Chinese rival, Baidu.
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Posted by: David Smith <david.smith.14916@gmail.com>
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