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Technology Stocks : Apple Inc.
AAPL 259.06-0.5%3:59 PM EST
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From: JakeStraw5/3/2016 8:25:29 AM
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The Depth of Apple’s Troubles in China
barrons.com
The iPhone maker’s problems in mainland China run far deeper than the country’s economic slowdown.

But as a few recent articles point out, Apple is facing a much deeper problem in China than a mere economic slowdown: the country’s political leaders are taking steps to stifle Apple and other Western corporations from doing business in the world’s second largest national economy. And that’s a problem that could last for a very long time.

In a thoughtful piece for the New Yorker, market commentator Zachary Karabell writes that Apple got a worrisome sign for the long term 10 days ago when China blocked its citizens from accessing iTunes Movies and iBooks— “just the latest move showing that the country’s response to U.S. tech companies’ ambitions will be to fortify its borders.”

The implication here is that Apple hardware becomes less compelling in China if consumers can’t access a closed garden of various Apple services.
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