Apple Says ITunes Movies, Book Services Closed Down in China

AppleBoxes of iPhone 6 smartphones sit stacked on a table as customers make a purchase during the sales launch at the Apple Inc. store in Palo Alto, California. Bloomberg

Apple Inc.’s iTunes Movies and iBooks service were closed down in China last week, less than seven months after they started operations.

Apple wants to restore services “as soon as possible,” the company said in a one paragraph e-mailed statement without providing a timeframe. The closings were ordered by the State Administration of Press, Publication, Radio, Film and Television, the New York Times reported, citing unidentified people familiar with the matter.

In February, the regulator and the Ministry of Industry and Information Technology released new rules governing publication of virtually all types of Internet content in China. The regulations took effect last month.

Greater China, which includes Hong Kong and Taiwan, is Apple’s largest market after the U.S., with the company rolling out new services amid slowing growth for device sales. For the three months ended December, revenue in the region rose 14 percent to $18.4 billion and Chief Executive Officer Tim Cook plans to continue investing despite an economic slowdown.

Apple was the third-largest smartphone vendor in the December quarter with 12.5 percent of shipments, according to researcher Canalys. That trailed Huawei Technologies Co. and Xiaomi Corp., who each had about 15 percent.

Last month, President Xi Jinping said China would accept foreign Internet companies as long as they abide by Chinese laws and regulations.

Bloomberg

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of investorsking.com, a digital business media, with over 10 years' experience as a foreign exchange research analyst and trader. A graduate of University of East London, U.K. and a vivid financial markets analyst.

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