China ID's iPhone as a security threat

Apple holds just a small fraction of China's smartphone market -- and since the company only officially entered the fray earlier this year, that's not entirely surprising -- but having the country's state-run TV station label the iPhone as a security threat probably isn't going to help matters. As The Wall Street Journal reports, that's exactly what has happened.

China Central Television reported the risks of the iPhone's "frequent locations" feature, which was introduced in iOS 7. As you might expect, the report added a good deal of spin to the idea that the iPhone tracks your location, suggesting that the data could reveal critical data to outsiders or even be used to expose government secrets.

With accusations of spying on both sides of U.S./China relations, American companies that do business there are feeling the backlash. This is just the latest example of the strained relationship, and while it's not likely that China would outright ban the iPhone, restrictions can be put in place by the government that would make Apple's devices more trouble than they're worth to own.

Of course, unlike some of its competitors, Apple hasn't gone all-in with regards to China, so the overall financial impact of hampered sales in the country wouldn't be as detrimental as it might have been otherwise.