Apple is, at present, planning on fighting the decision with an appeal, and noted in a statement given to CNBC that its iPhone 6, 6 Plus, 6s, 6s Plus, and SE handsets are all still available to purchase in China.
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Shenzhen Baili holds a patent in China for its 100C smartphone that looks strikingly similar to Apple’s iPhone 6.
But it’s part of a string of recent bad news for Apple in China, which is seen as a major potential market for American tech companies. Chinese state media have accused the company of poor customer service and warranties.
The ruling last month initially raised the possibility that sales of the latest iPhone models could be blocked in the Chinese capital, Beijing.
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 USA citizens. Apple will appeal this decision, and continue to sell both iPhone models as long as the court continues to review their request.
Apple could not be immediately reached for a comment.
Earlier this year, Apple had to shut down its iBooks store and sales of iTunes movies following a Chinese clampdown. Along with the currency issue, all the hurdles from China now in front of Apple just like several years ago the plentiful opportunities offered by same country.
Cosmetics company Elizabeth Arden surged 49.1 per cent on news it agreed to be acquired by Revlon for about US$870 million. As one of the most successful Western brands in the country, Apple has often drawn regulatory attention and opportunistic lawsuits. The patent was re-examined on December 2, last year.
Gene Munster, an analyst who covers Apple for Piper Jaffray, said the clampdown on the iPhones is more symbolic than anything, due to the timing of the move and when Apple is likely to release the next iteration of the smartphone.
Apple, which uses Chinese assemblers, is finding out that the future may not be so bright.
It’s not Apple’s first legal challenge in China.
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In its original outreach to Apple in 2014 – a note titled “Lawyer’s Letter” – Shenzhen Baili said it hoped to resolve the patent dispute out of court.
