Chinas influential national television labeled a location-tracking software featured in Apple Incs iPhone a threat to national security in the latest confrontation between the Asian country and U.S. tech giants, including Microsoft Corp., Google Inc. and Facebook Inc.
The accusation comes only a few months after the iPhone maker struck a deal with China mobile to supply its smartphone and tap the Asian nations 1-billion base of smartphone users.
The China Central Television (CCTV) said in its noon broadcast on Friday that the feature collects data regarding the users whereabouts via its positioning technology and thus can reveal the users home address, unit information etc. The announcement warned that people with access to the collected information may be able to gain knowledge of Chinas economic situation or even state secrets, citing Ma Ding, head of the online security institute at People’s Public Security University of China.
Apples local representatives did not respond to requests for comments. According to the tech giants website explainer, the position-tracking feature is helpful to iPhone users as it provides accurate and efficient travel routes and it can be disabled via the smartphones settings menu. Moreover, data is kept only on the device and cant be sent to Apples servers without the users consent. Additionally, any data relative to position tracking that actually leaves the smartphone is anonymous and encrypted, ensuring the users privacy.
The national threat allegations may impede Apples push into the Chinese market, although opinions voiced through the CCTV do not necessarily reflect the views of Chinas top leaders. Nevertheless, they still have a significant influence over the Chinese society and can have a lasting effect, especially if the high-level criticism continues.
According to research firm Analysys, the iPhone has a market share of only 6% in China, although it dominates the markets high end as around 80% of smartphones with a price tag of over $500 are made by Apple. However, the wider market is becoming further dominated by Samsungs models, as well as other cheaper rivals such as Xiaomi, Huawei and Lenovo.
US technology firms have been feeling increasing pressure from China following Edward Snowdens allegations that the US National Security Agency was spying on high-ranking Chinese officials via data provided by tech companies. The cybersecurity debate was refueled after five Chinese military officers received charges in May for hacking the computer systems of US companies. Apple denied it had granted US agencies access to the data it collects.
Apple Inc was little changed on Friday and closed the session at $95.22 per share, up 0.19% on the day, marking a one-year change of +55.99%. The iPhone maker is valued at $574.15 billion. According to CNN Money, the 44 analysts offering 12-month price forecasts for Apple Inc have a median target of $100.00, with a high estimate of $115.00 and a low estimate of $51.43. The median estimate represents a +5.02% increase from the last price of $95.22.
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