The iPhone 15 vs. China

Hey, this is Vlad in Hong Kong. Today’s the day Apple introduces the new iPhone, whose sales could be influenced by circumstances far outsid [View in browser]( [Bloomberg]( Hey, this is Vlad in Hong Kong. Today’s the day Apple introduces the new iPhone, whose sales could be influenced by circumstances far outside of the company’s control. But first… Three things you need to know today: • Apple’s iPhone launch, [in charts]( • Embracer looks to [sell game studio Gearbox]( • Instacart may slash its [IPO valuation to $9.3 billion]( Political phoneball Smartphones are suddenly headline news again. Just last week, hundreds of billions of dollars got [zapped from Apple Inc.’s market value](, and the entire global supply chain was jolted by aftershocks, while shares in Chinese tech manufacturers leapt. At the heart of it? The US-China conflict and the way it’s playing out in the smartphone market. Two moves out of China triggered the latest convulsions: Huawei Technologies Co.’s attention-grabbing, mostly made-in-China [Mate 60 phone]( and the [expansion of a ban on iPhones]( among Chinese government agencies. A whirlwind of patriotic sentiment on the mainland is now being studied by analysts, the boldest of which is forecasting as much as 38% of iPhone sales in China being impacted by Huawei’s new phone. The importance of government agencies as consumers of devices in China can’t be overstated: They account for millions of units and, moreover, set the tone for what businesspeople in the country are most likely to buy. Lest we forget, China's done something similar before — just on a grander scale — via what's now known as the Great Firewall. When it cut off its population of 1.4 billion from US internet services like Google and Facebook, it fueled the empires that eventually became Alibaba Group Holding Ltd. and Tencent Holdings Ltd. Even so, the anticipated factor of Huawei on Apple’s business in the country is even more curious. To me, it signals how the hardware game is now also one where winning and losing is controlled by higher powers. In a simpler time, Nokia and BlackBerry lost their global market share to market forces. Faster, smarter, more aggressive plays by Apple and Alphabet Inc.’s Google won the day, unaided by geopolitical machinations. Then everything changed in 2019 when the Trump administration shot an arrow into the knee of Huawei’s smartphone business. The company that was threatening to become China’s Apple suddenly had to limp along without access to key technology and software. So, blame should be attributed in both directions: The US brutalized (more than one) Chinese business in a way that perhaps wasn’t strictly necessary to ensure its national security, as officials have long argued. And now China is making moves that, likewise, aren’t especially urgent on national security grounds but send a message back. Most of the world’s smartphone customers will weigh Apple’s new phones on their merits. Bloomberg has reported the [iPhone 15]( will get the pill-shaped cutout at the top of the screen and better cameras, and the pro models will have [titanium frames](, smaller bezels and, of course, better cameras. They’ll all switch from Apple’s proprietary Lightning port to USB-C, which will no doubt be annoying, but trust me, it’ll be better in the long run. A notable portion of the world’s largest smartphone market won’t pay attention to any of that. For some in China, Apple is out of contention. That the world’s most valuable company is squarely in the middle of this geopolitical hailstorm makes for a compelling story for the rest of this year. And here we were, thinking the only hot tech story for the rest of our lives would be artificial intelligence. —[Vlad Savov](mailto:vsavov5@bloomberg.net) The big story Apple extended an agreement with Qualcomm, a sign that the company’s own modem chips aren’t ready. The deal will cover [phones released over the next several years](. One to watch [Watch the Bloomberg Technology TV interview]( with Techstars CEO Maelle Gavet. Get fully charged Oracle reported slowing growth of cloud sales, [sending the stock falling](. Japan is spending billions of dollars in an attempt to [create chipmaking infrastructure](. Indian education-tech giant Byju’s made a surprise bid to [repay a $1.2 billion loan early](. It’s also in talks to [sell some business units](. The eldercare startup Papa lost contracts with [major health insurers](. Bloomberg Businessweek earlier detailed extensive allegations of abuse surrounding the platform. The South Korean chipmaker SK Hynix had a $24 billion stock rally this year that’s been [deflating due to the US-China tech war](. More from Bloomberg Get Bloomberg Tech newsletters in your inbox: - [Cyber Bulletin]( for coverage of the shadow world of hackers and cyber-espionage - [Game On]( for reporting on the video game business - [Power On]( for Apple scoops, consumer tech news and more - [Screentime]( for a front-row seat to the collision of Hollywood and Silicon Valley - [Soundbite]( for reporting on podcasting, the music industry and audio trends - [Hyperdrive]( for expert insight into the future of cars Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Tech Daily newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](