Finance Assignment Paper on the Dispute between Apple Inc. and the Chinese Government

The Dispute between Apple Inc. and the Chinese Government

Apple Incorporation, through their company AAPL has sued the Chinese government agency and local company over a struggle for patent rights associated with their product ‘Siri’. The case was officially launched by Apple, on Monday, against the Chinese State Intellectual Property Office and developer of softwares Zhizhen. This dispute came into existence when Shanghai Zhizhen Network Technology accused Apple Incorporation of copying their robotic product known as “Xiao I Robot,” which was developed in 2004. Apple is accused to have used the same features in the robot when developing their ‘Siri’ product, since the two products worked in a similar manner. This kind of dispute has come when Apple is gaining miles in the Chinese market with regard to selling Smartphones. In fact, China Mobile and Apple were already getting into a partnership that has been in the making for several years.

            Looking at this scenario in a technical aspect, one of the largest markets that Apple enjoys up to a 7% share market is China. Secondly, Apple has already caught up with the Korea based manufacturer of Smartphones, Samsung Electronics Company Limited, in addition to other local companies such as Lenovo, and Huawei Technologies. Logically speaking, Apple is enjoying a state of mutual benefit in China, and this means lots of money or profits being earned by the company due to its activities in China. Nonetheless, the decision made by Apple Inc. to sue the Chinese government would have more negative consequences if it takes the wrong course. It is possible that the better working environment and the relationship that the company enjoys may come to an end. Similarly, Apple may end up losing its contract with China mobile, which would mean losses, and the company may also be expelled out of China if forced to operate under strict regulations. It is thus a thoughtless act that was worth letting go and Apple enjoys the monopoly and friendliness that it is accorded for purposes of its continuity and profitability.

Work Cited

Oliver, Sam, “Apple Sues Chinesed Government agency over Siri Patent Dispute.” Apple Insider Feb. 2014. 5 Mar. 2014 < >.