Top Stock: Apple (NASDAQ AAPL) Plans Servers in China

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In an historical development, Apple Inc (NASDAQ AAPL) has started housing data servers on Chinese soil to store personal data of Chinese users, potentially out of the reach of US legal jurisdiction. Although Apple claims the move is to “improve service,” the issue of government access to cell phone communications that can be used to control a domestic population is addressed.

The storage would include data gathered from cell phone usage, a key source of US National Security Agency spying. Instead of storing data in the US, Apple Inc (NASDAQ AAPL) would store user data on servers provided by China Telecom Corporation Limited, China’s largest wireless carrier, according to a statement from Apple.

Although a report said Apple attributed the move to an effort to “improve speed and reliability of its iCloud service,” it is well known, as previously reported in ValueWalk, that NSA spying is a significant issue being considered worldwide and impacting the bottom lines of many tech giants.

Apple Inc (NASDAQ AAPL): Chinese Servers for Apple

“Apple takes user security and privacy very seriously,” the Cupertino, California-based company said in a statement. A concern that led Google to previously avoid placing servers in China was government censorship and privacy concerns in a country with a history for such violations.

Citing unnamed sources, the report attempts to allay fears the Chinese government would get their hands on sensitive and private cell phone conversations and data usage patterns. Apple is reported to keep the encryption keys that keep data private at an offshore location so the Chinese government cannot access the data. The ability to track each cell phone user’s location, learn their usage patterns and monitor their communications, in the wrong hands, could be used to control and suppress a population to an historic degree.

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Apple Inc financial news (NASDAQ AAPL)

Apple Inc. (NASDAQ AAPL) claims to have developed encryption systems for services so secure, even Apple itself can’t unlock the code. Encryption services work by taking digital data – an e-mail, phone conversation or document – and then break the data down into an apparently unreadable code. This code can only be unlocked by an encryption key.

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