Microsoft is implementing a new security measure in China, requiring employees to use Apple devices for work access. Previously, they were allowed to use Android smartphones, but with the recent announcement, things have changed for those who usually rely on these handsets.
With the growing tensions between Beijing and the US, the Chinese mobile ecosystem is only one of many sectors that will be affected.
Microsoft Employees Need to Use Apple Devices at Work
According to an internal memo reviewed by Bloomberg, Microsoft will mandate the use of Apple devices for employee login verification in China. This falls under the company's global Secure Future Initiative (SFI), aiming to standardize password management and identity verification across the workforce.
Fragmented App Ecosystem Drives Decision
The fragmented nature of China's app market plays a key role in Microsoft's decision. Unlike most of the world, Google Play is unavailable in China. Local phone manufacturers like Huawei and Xiaomi operate their app stores, lacking Google Mobile Services (GMS). These missing services, including the Microsoft Authenticator and Identity Pass apps, are crucial for secure logins within SFI.
Android Users Transition to iPhones
To ensure compliance, the software maker will provide a one-time iPhone 15 to employees currently using Android devices, regardless of the manufacturer. These phones will be available for collection at designated hubs across China, including Hong Kong where GMS is accessible.
How the Market Reacted on Microsoft's Decision
The news of Microsoft's decision had a minimal impact on stock prices. Microsoft and Apple shares saw slight pre-market increases, while Alphabet (Google's parent company) and Xiaomi experienced minor declines. Microsoft hasn't publicly addressed the iPhone mandate, leaving the specific reasoning unclear.
Security Concerns and Geopolitical Tensions
This move comes amidst a backdrop of heightened security concerns within China.
Since 2023, an increasing number of government-affiliated entities have banned employees from using foreign devices due to security anxieties. Microsoft, meanwhile, has faced repeated attacks by state-sponsored hackers worldwide.
A Russia-linked breach earlier this year compromised data from several US government agencies.
Microsoft's Security Push
Motivated by these incidents and legislative pressure, Microsoft has made security a top priority. The SFI initiative represents the company's most ambitious security overhaul in two decades.
Key aspects of SFI include faster cloud vulnerability patching, enhanced credential protection, and mandatory multi-factor authentication for employees.
While the iPhone mandate in China raises questions about its practicality and geopolitical implications, it underlines Microsoft's strong commitment to bolstering its security posture on a global scale.
As of March 31, 2024, there are 221,000 employees at Microsoft worldwide. 120,000 are US-based employees while 101,000 came from different parts of the world.
In other news, Tech Times reported that Microsoft agreed to settle a $14.4 payment regarding the allegations that it discriminated against employees based on their use of their protected leave.
