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Intellectual property regulators in Beijing have ordered Apple to stop selling its iPhone 6 and iPhone 6 Plus in China's major city, claiming they violate patents held by a Chinese smartphone maker.
Apple's China business has taken another hit, as Beijing's intellectual property regulators have order the iconic computer maker to halt sales of its iPhone 6 and iPhone 6 Plus in that major city.
The Beijing Intellectual Property Office ruled that Apple's current slate of iPhone smartphones violates the patents held by China smartphone maker Shenzhen Baili for its 100C phone, according to a Bloomberg report. Apple has appealed the May ruling that claims it copied the 100C smartphone's exterior design, Forbes reports, but it is not clear whether the case will work its way through the legal system and the order will take effect before Apple comes out with its next-generation iPhone -- the iPhone 7 -- which the company traditionally releases in September.
While the iPhone 6 ban order only applies to the city of Beijing and a court may ultimately rule in Apple’s favor, the patent infringement order, nonetheless, can cause problems for Apple and marks the latest challenge the company faces in China, one of its major markets outside the United States.
In Beijing, some mobile stores are already halting sales of the iPhone 6 and iPhone 6 Plus, since the intellectual property office order came out in May, reports the Wall Street Journal.
[Read more about iPhone sales and the importance of these Chinese market.]
During its fiscal second quarter, Apple attributed a drop in iPhone sales as contributing to its first quarterly decline in revenue and net profits in the past 13 years. Apple's China market, which is its second largest market after the US, posted a 26% revenue decline during its latest quarter.
Apple has encountered other troubles with China, as well:
With China such a crucial market for China and troubles with its bread-and-butter iPhone flaring up in that country, it stands to reason why Cook would visit Beijing in May and, according to MarketWatch, have Apple invest $1 billion in that city’s ride sharing company Didi Chuxing Technology.