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White House Advisor Kudlow Says Apple Technology May Have Been 'Picked Off' by China (cnbc.com)

Posted by msmash on from the stranger-things dept.

Fred Imbert, writing for CNBC: Larry Kudlow, director of the National Economic Council, said Friday that Apple's technology may have been stolen by the Chinese. "I don't want to surmise too much here, but Apple technology may have been picked off by China and now China is becoming very competitive with Apple. You've got to have rule of law," Kudlow said in an interview with Bloomberg. "There are some indications from China that they're looking at that, but we don't know that yet. There's no enforcement; there's nothing concrete." Kudlow's comments came shortly after China's Commerce Ministry said Chinese and U.S. officials will meet next week to discuss trade. Both countries have been engaged in a trade spat for months that has sent ripples through global markets. John Gruber at DaringFireball comments: I think what he's saying here is that the Chinese stole Apple technology, copied it, and are now flooding the Chinese market with phones based on that stolen tech. I'm 99.8 percent certain that hasn't happened -- if there were Chinese phones built with stolen Apple technology we'd know it because we'd see it.

11 of 181 comments (clear)

  1. Apple technology by Anonymous Coward · · Score: 2, Insightful

    Apple technology!!!

    Ahahaha that's so funny! Now the Chinese can round their corners add notches to screens and remove headphone jacks and extra mouse buttons!

    1. Re: Apple technology by cypherthor · · Score: 5, Insightful

      Well.... Chinese companies are flooding the whole world with dirt cheap copies of apple devices. Every single device since 2006 has a Chinese look alike clone... down to the non standard screws on the casing of the 2011 MacBook Air. Itâ(TM)s just like what they are doing to all design companies from gucci to Bose to mevodo. I know some of you think design of devices is something you should be free to copy, but a lot of money spent hiring the best designers and making designs. Apple cant just change their design Willy nilly because the entire product line is consistent. Honestly, the way these Chinese companies are operating is predatory, I think they are making these devices at a loss... probably subsidized by the Chinese government so that apple goes out of business. These products should be banned from sale in US and Europe. If they copied the outside almost exactly, you donâ(TM)t think they copied the insides too? Same logic board design, same component sets... same .... need I go on? Those are you defending these practices and saying its consumer freedom... ask yourselves, what kind of freedom are you going to have when apple, google, sony, even samsung are gone and you have to buy Chinese government subsidized smartphones and computers? You think thinks will be as cheap as they are now? Want a hint... look at any industry that has been decimated by Chinese clones.

  2. Build something in a country by spiritplumber · · Score: 5, Insightful

    and the people in that country will learn how to build it. Big surprise, right?

    --
    Liberty - Security - Laziness - Pick any two.
    1. Re:Build something in a country by Anubis+IV · · Score: 4, Insightful

      Being able to build things isn't the issue. That's fine. As is learning to design those things after building enough of them. That's fine too.

      But if they have a contract in place that stipulates that the parts are to be built exclusively for the client and the designs are to remain confidential, there's a problem if they start building the parts for other clients (including themselves) or sharing the designs with anyone else.

      To draw an analogy, it's fine if a contractor knows how to build homes. It's fine if they eventually learn how to design their own homes after building enough of them. But if your general contractor steals your custom home's blueprints and sells them to a developer who builds a neighborhood of copycat houses right next to yours, that's not fine.

      I don't know what's being alleged here, but it seems evident to me that they aren't simply talking about China learning how to manufacture and design stuff on their own.

    2. Re:Build something in a country by ewhenn · · Score: 5, Insightful

      Being able to build things isn't the issue. That's fine. As is learning to design those things after building enough of them. That's fine too.

      But if they have a contract in place that stipulates that the parts are to be built exclusively for the client and the designs are to remain confidential, there's a problem if they start building the parts for other clients (including themselves) or sharing the designs with anyone else.

      To draw an analogy, it's fine if a contractor knows how to build homes. It's fine if they eventually learn how to design their own homes after building enough of them. But if your general contractor steals your custom home's blueprints and sells them to a developer who builds a neighborhood of copycat houses right next to yours, that's not fine.

      I don't know what's being alleged here, but it seems evident to me that they aren't simply talking about China learning how to manufacture and design stuff on their own.

      Yeah, except you left out the part where you know that contractor you just did a deal with has stolen designs from 50 other designers and you still decide to do business with them anyways, and then act surprised when they steal your design too. Gee, who would have guessed that would happen?!?

  3. Of course China stole Apple technology by Spy+Handler · · Score: 3, Insightful

    do the China phones have rounded corners? Yeah? Well there you go.

  4. What technology, exactly? by SuricouRaven · · Score: 5, Insightful

    Could he maybe offer some specifics? Exactly what is is that China is being accused of stealing? A claim this lacking in detail is suspiciously non-falsifiable.

  5. The plus side of incompetence by T.E.D. · · Score: 3, Insightful

    I'd be much more worried about a White House advisor spouting nonsense if we had a White House that actually listened to advice.

    With this administration, if the Big T himself didn't say it, its just meaningless noise. And sometimes even if he DID say it.

  6. How would you know by dkman · · Score: 3, Insightful

    China builds Apple's phones. There was no "theft" necessary. Apple taught them how to build the phones.

    I assume what's in question here is "Is China building iPhones and selling them in China without giving Apple a cut?"

    That's an entirely different question, but quite plausible.

    As for DaringFireball's later comment: How would you know? If they technically are iPhones flooding the Chinese market they wouldn't look like "fake knockoffs" because they technically aren't. But if Apple isn't selling the phones or getting any cut then there's still shady activity going on.

    --
    I refuse to sign
    1. Re:How would you know by jellomizer · · Score: 3, Insightful

      I worked for a company that bought out an other company including all its IP. The owner of the bought out company quit (because he didn't realize when you get bought out, you are no longer in command of such company). Being fed up he used his money he got from the purchase to start his own company. Then he used the software he wrote for the previous company which we now own. We sued him, we won.

      Now if he had written a new program then he would be OK. But the software that we bought the rights too. Thus he went bankrupt, and we got all our money back that was the cost of the company to be purchased.

      Just because you made it, doesn't make it yours. If you sell it, or get paid to build it for someone else, it belongs to them not you, they paid you for it, so it is no longer yours.

      What is yours though, is the experience gained in making it, so you will be on good footing to make something new, possibly better.

      --
      If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  7. No, China has not! by DaMattster · · Score: 3, Insightful

    I am not an apologist for China but neither am I for Apple. Apple simply hit peak iPhone and had no ideas to really innovate further. Let's put the blame where it really lies, with Apple. The last 3 years the changes were basically a better screen and a better camera and hardly worth spending that kind of money for so little in return. In fact, we've really hit peak smartphone altogether. Whatever changes we will see forthcoming are hardly worth the additional price. In fact, I stopped chasing the smartphone craze three years ago. Now I only get free phones offered by prepaid carriers. I usually float between 3 different ones depending on which company has the best deal. I would rather spend the money on a real digital camera.