The US sales ban, officials note, will not only cause ZTE to miss shipments and lose orders on handsets and transmission equipment. It will also seriously harm ZTE's 5G and Artificial Intelligence development process. That ban comes just two weeks after ZTE succeeded in making a first phone call enabled by 5G technologies.
According to the State Council, Beijing's aim is to make China among the first countries to issue 5G licenses in the second half of 2019. And beyond that, the goal has been to commercialize 5G by 2020, and to become the world's largest 5G market by 2025 - all adding to China's extreme sensitivity to these actions.
Apple Downgraded at OTR as Chinese Channels Seek Local Options By Kamaron Leach
Apple Inc. fell 3.5%, the most in two months, as OTR Global cut the iPhone developer to mixed from positive, citing a deteriorating China outlook as Asian vendors edge in on market share.
Notes that while iPhone order outlook is normal for more than one-half of AAPL sources, very large Chinese channels are reducing their 2Q18 order share and opting for local vendors AAPL was able to hold most of its share in a weak global market during 1Q18, but data indicates competition is intensifying