Microsoft to give an iPhone 15 to all of its employees in China

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Written on Jul 8, 2024

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Microsoft wants its China employees to switch from Android to an iPhone.
An overview of what the MSFT policy change may mean for Apple Inc.
Both MSFT and AAPL are in the green in premarket on Monday.

Microsoft Corp (NASDAQ: MSFT) is in focus this morning following a report that it’s about to make a significant change in its device policy for employees in China.

Starting September, the tech behemoth will require its staff to use iPhones only for work-related activities.

MSFT is currently up well over 25% versus the start of 2025.

Why does Microsoft want its staff to use an iPhone?

Microsoft wants its workforce in China to switch from an Android device to an iPhone to strengthen security measures, as per a Bloomberg report.

The multinational will make its employees in the largest Asian economy use apps like Microsoft Authenticator and Identity Pass for verification when they log in to work devices from September.

They must have an iPhone for the aforementioned directive to go live since Google Play, unlike the iOS store, is not accessible in China.

Microsoft is currently the most valuable company in the world with a market cap of nearly $3.5 trillion.

MSFT is fully committed to security

The notable change to device policy which is part of the Secure Future Initiative that Microsoft announced in November of 2023 will likely affect hundreds of its employees in China.

Note that MSFT itself will distribute iPhone 15s to its employees who are currently using an Android device for work purposes in China. Its workers will be able to collect their new handset from various centres in China – including Hong Kong, the Bloomberg report added.

The Nasdaq-listed firm is committed to security following several state-sponsored hacks – the latest one being a Russia-linked attack in January that affected the State Department as well as a number of other government agencies.

Microsoft shares have more than tripled now versus their pandemic low.

What Microsoft news may mean for Apple Inc

If Microsoft does indeed help its staff in China to switch to an iPhone in the final quarter of 2024, it could mean a material boost for iPhone sales that have reportedly stalled in that region this year.

In May, Apple Inc (NASDAQ: AAPL) said its flagship handset brought in $45.96 billion in its second financial quarter – down some 10% on a year-over-year basis.

The number also fell slightly short of the analysts’ forecast at $46 billion. Still, Luca Maestri – the chief financial officer of AAPL said at the time: