Billionaire investor Carl Icahn was on to something when he dumped his entire stake in Apple Inc. AAPL and warned other investors that the government in China could "come in and make it very difficult for Apple to sell there."
On Friday, The Wall Street Journal confirmed Icahn's concerns to be true. The publication noted that Beijing's intellectual property regulator ordered Apple to cease selling its iPhone 6 and iPhone 6 Plus in the city of Beijing because the phone's design is too similar to a smartphone manufactured by a local company.
The company, Shenzhen Baili, manufactures a smartphone called 100C. Apple could appeal the ruling to a higher court, according to Chinese law.
The Beijing's government move to ban the sell of iPhone 6 devices follows a prior decision by the Chinese government to shut down Apple's iBooks and iTunes Movies services.
Shares of Apple were trading lower by more than 2 percent at $95.60 ahead of Friday's market open.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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