IBM-Apple App Deal for Businesses Hits Snag as China Spurns IPad

International Business Machines Corp. (IBM) 's goal of dominating the business applications market through an alliance with former rival Apple Inc. (AAPL) hit a snag where IBM has faced challenges: China.The Chinese government excludes Apple products like the iPad and iPad Minis from the list of products that can be purchased with public funds for security reasons, according to government officials familiar with the matter. This means that business applications software for IBM builds tablets may encounter obstacles to reach the booming Chinese corporate market.

The Chinese government has U.S. technology companies with the exception of publicly-funded purchases and examined the dependence of foreign products tensions rise between the countries over claims of hacking and cyber-espionage. The movement against Apple products could deter potential corporate customers that IBM has to expand its mobile phone business.Large companies tend to buy in China, where the government takes over, Frank Gillett, an analyst at Forrester Research Inc.said in an interview. It is a point of national pride here. I would expect the pattern to continue.

Lia Davis, a spokesman for IBM in Armonk York, NY-based, declined to comment on the decision of the Chinese government. Kristin Huguet, a spokeswoman for Apple, in Cupertino, California, declined to comment.China is for the company IBM portable device market becoming increasingly important, especially after announcing an alliance with Apple last month to develop software and services-centric iPhone and iPad devices for businesses manage. If you have a mobile phone manufacturer whose products many workers already use personally was the agreement to be a big boost for mobile long-term effort by IBM.

China Revenue 

While smartphones are not listed Chinese government last month, the state China Central Television that features Apple iPhone software can lead to leakage of state secrets. Apple denied these claims.For tablets in China, the commercial market with a high rate of growth remains, said IDC analyst Frank Wang in a research note on July 11. Shipments of tablets to businesses rose 14 percent in May compared with the previous year.

Dependent on China for about 16 percent of its $ 37.4 billion in sales last quarter Apple, data compiled by Bloomberg. IPad sales in the world's largest market increased by 51 percent, said CEO Tim Cook July 22.Apple is just the latest U.S. technology company tested by the Chinese government after revelations Edward Snowden passed a program of NSA spying and the U.S. announcement May over allegations of tax of five Chinese military for allegedly stealing corporate secrets face year.