Apple Inc. share price down, receives China regulatory approval to sell new iPhones

Apple Inc. secured the last approval needed from Chinas regulatory authorities and will start selling its new iPhone 6 and iPhone 6 Plus models in the Asian country on October 17th after addressing user security and privacy issues.

“We are thrilled to bring iPhone 6 and iPhone 6 Plus to our customers in China on all three carriers at launch,” Apple Chief Executive Officer Tim Cook said in a statement, which was cited by Bloomberg.

The US tech giant said that it received a network access permission by Chinas Ministry of Industry and Information Technology, after Apple had met requirements related to security and user data privacy. This was the last step in a process of close scrutiny which delayed shipments of the new iPhones to China and allowed competitors, such as Samsungs Galaxy Note phablet, to win a head start.

According to the companys statement, the sale of the new models will begin on October 17th, while pre-orders will be available on October 10th at all three state-run carriers.

Apple started selling its new smartphone devices earlier in September. It reported record 10-million sales of the new line over the first weekend. The company, however, did not manage to time its smartphones global release with securing Chinas regulatory approval. Currently, the Asian country is considered the biggest smartphone market in the world, making it a keystone in Apples growth plans. The tech giant reported that about 15.8% of its total revenues during the latest quarter were generated in the country.

The managing director of China Market Research Group – Mr. Shaun Rein commented for Bloomberg: “Apple is coming under greater scrutiny on personal data security from the government. This is definitely starting to affect consumers and some are thinking twice about buying Apple now because the government has made them nervous.”

However, the private data security issue is not related exclusively to the Cupertino, California-based company. Apples smartphones, as well as other mobile devices have been subject of increased scrutiny after reports showed that these gadgets can easily be used as tracking devices or to access users private data. The Wall Street Journal reported last year that US and foreign law-enforcement agencies used special software, most often added without the manufacturers knowledge, that allowed them to gain access to users smartphones, tablets and laptops.

The process of getting regulatory approval included talks over potential personal data leaks due to weak spots in the operating system of Apple. According to Chinas ministry, the U.S.-based company has agreed to take measures and address those risks in its iOS 8 operating system.

Apple Inc. fell by 0.64% on Monday on the NASDAQ to close at $100.11 per share, marking a one-year change of +45.16%. Shares fell by 0.08% to 78.99 euros by 8:01 GMT in Frankfurt on Tuesday. The company is valued at $599.5 billion. According to CNN Money, the 43 analysts offering 12-month price forecasts for Apple Inc. have a median target of $110.00, with a high estimate of $135.00 and a low estimate of $60.00. The median estimate represents a +9.88% increase from the last price of $100.11.