China has been a lucrative market for Apple over the past few years. However, Apple may be facing a serious struggle going forward as the country appears to be blocking most of the company’s new digital services. Apple users in China currently can’t find Apple Arcade or Apple News and News+ on their devices, with the streaming app Apple TV+ now being added to the list as well. This shows that not everything is well between Apple and the Chinese authorities.
It must be noted that Apple is banking heavily on the success of its digital platforms, and it appears like the plans may have hit a temporary roadblock with China. As Bloomberg notes – “About 10% of Apple’s services revenue comes from China.” Apple’s digital platforms like iTunes Movies and iTunes Music are also banned in the region. While the country does allow podcast apps, it’s very restrictive with regard to the choices available.
So while Apple’s popularity in China has been mostly driven by its premium hardware like the iPhone, iPad or even the MacBook, the challenge for the company now will be to find a new source of revenue to make up for the ban.
Apple Arcade is available in a wide range of countries across the world including neighboring regions of China. It is priced at $4.99 per month and gives you access to a wide range of specially curated games. The company also offers a 1 month free trial with this service. Apple TV+ also costs $4.99 per month and comes with a wide range of original shows with more being added every month.
It will be interesting to see how Apple will overcome this particular issue considering that it could affect a big chunk of its forecasted revenues.