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2016.05.24 Chinese government shuts down Apple’s iTunes Movies and iBooks services
The Chinese government ordered Apple Inc. to suspend their e-book selling operation and movie distribution operation in the Chinese market. The sales total of Apple’s smartphone “iPhone” taking a downward turn first, and a new worry has come about in Chinese market which supports Apple’s turnover.

The services that have been stopped this time are the movie distribution service “iTunes Movies” and e-book selling service “iBooks” in Apple’s contents service “iTunes”. The reasons as to why China’s government ordered Apple to suspend these businesses are unknown, but articles state that there is a possibility of China entering a protest against Apple’s entertainment services.

In the second-quarter of the fiscal year starting on April 26, iPhone sales, which plays a big role in total sales has fallen dramatically. Especially, their sales total in the Chinese market recorded a decline of 26% compared to the same period of the previous year. The Chinese market is the second largest after the North-American market for Apple, but the sales volume decrease in the Chinese market this time will have a major effect on Apple’s sales strategy.

While their device business has reached its apex, Apple views their contents service as a potential revenue stream and increases its dependence on the Chinese market.

However, there is a potential that Apple’s response to the Chinese market changes because of the stop order against their contents services.

Apple Inc. issued a statement saying, “We hope that Chinese users will be able to use these e-books and movie services again as soon as possible.”

For more information, please refer to the following websites:
 
http://www.bloomberg.com/news/articles/2016-04-22/apple-says-itunes-movies-book-services-closed-down-in-china

http://jp.reuters.com/article/apple-china-idJPKCN0XM0R7

http://forbesjapan.com/articles/detail/12000