China halts iPad sales

The sale of Apple iPads in some Chinese cities has been prohibited by authorities, following a dispute with a national company that claims to own the iPad name.

Reuters reports that Proview Technology (Shenzhen) has called for commerce departments in a string of Chinese cities, including Shijiashuang near Beijing, to seize iPads due to the name dispute. This comes after a protracted court case over the name, with a court in southern China in December rejecting a lawsuit by Apple, which said it was the rightful owner of the name and accused the Chinese technology company of trademark contravention.

According to the Los Angeles Times, Proview has since filed lawsuits in 20 cities, insisting that authorities preclude Apple from selling or marketing its popular tablet device. “The company has also filed lawsuits against Apple and retailers in Shanghai, Shenzhen and Huizhou, a city in southern Guangdong province.” More action across the country is expected.

Proview Technology is a subsidiary of Proview International Holdings, one of the top five computer monitor manufacturers in the world, according to Wikipedia. Its products are marketed under its own brand name, as well as under others through its global distribution network.

The recent development comes as Apple has been enjoying a considerable swell in its share of the Chinese smartphone market. According to Reuters, China has over 950 million mobile phone users, more than Europe's entire population, and its economy is expected to overtake the US as the world's largest in 10 to 15 years.

As at December, it was reported that the California-based technology giant's sales in Greater China saw its fourth-quarter revenue increase four-fold, to $4.5 billion (about R34.5 billion), out of a global total of $28 billion (about R215 billion).

Strategy Worx MD Steven Ambrose says the clamour over the iPad name and consequent removal of the devices from some shelves in China will, if anything, produce a positive result for Apple.

“Obviously, if the dispute has gotten to the point that iPads are being removed from shelves, it could have a short-term impact on sales, but one must remember that China has very different copyright laws than in the west, for example, and for once it may actually work in Apple's favour.”

The net effect, says Ambrose, is likely to be short-term disruption, but long-term benefit as the iPad will remain in the market and enter through other, official channels. “It may even end up being more popular with Chinese consumers in light of this publicity.”