But other tech names were also weak, with Amazon, Facebook and Google parent Alphabet all losing at least 1.0 percent.
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The statement ordered Apple to stop selling certain older versions of the iPhone within Beijing, though an appeal of such a ruling to the courts in China usually forestalls any sales injunctions.
The iPhone 6 and 6S models are similar to Shenzhen Baili’s little-known 100C phone, the authority ruled. “We appealed an administrative order from a regional patent tribunal in Beijing last month, and as a result the order has been stayed pending review by the Beijing (Intellectual Property) Court”.
“It would likely be no more than a 2- to 3-percent iPhone unit headwind, or a 1- to 2-percent revenue headwind, just for the September quarter”, Piper Jaffray analyst Gene Munster said in a Friday note.
The author of the piece goes even further to suggest that this would be an opportunity for Apple to innovate their products to work around these patent claims, which is where the release of the iPhone 7 would come into play, perhaps doing what they can to placate the regulators until they release it.
This isn’t the first time Apple has been the target of scrutiny in China.
Apple shares closed at $95.33, down $2.22, or 2.3 percent.
“Does it impact anything on the fundamentals today?”
“I think the Chinese government feels that many American companies are not paying their dues”, said Mr. Robinson, the lawyer.
Apple had to shut down its iBooks and iTunes Movies services in China in April because of violations of foreign publishing regulations.
SAN FRANCISCO (AP) – Apple is embroiled in a patent dispute in China that threatens to block future sales of the iPhone 6 in Beijing unless the company can overturn a regulator’s recent ruling.
While Apple jousts with the Chinese government, Chinese consumers have delighted in the company’s products.
The China market generated $61 billion for Apple past year.
Activist investor Carl Icahn also cast a spotlight on Apple’s prospects in China earlier this year when he cited concerns about a sales slowdown in the country as the reason he made a decision to sell a large stake that he held built up in the company since 2013. There, its iPhones have been seen as a status symbol.
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The low price point of the iPhone SE, which retails at $399, versus the iPhone 6S’ price of $650, has been critical to the device’s success in emerging markets like China and India, where many people count with less disposable income than US citizens.
