This marks the first time that Apple has decided to store the personal data of some of its users in China. Personal data being stored in the country comes from users that live in China. User data is being stored on servers from China Telecom (CHA), reports Reuters.
Some tech companies, such as Google (GOOG), have refused to store data in China due to concerns of censorship and privacy. The company’s encryption keys for personal data won’t be stored in China and also won’t be provided to China Telecom. Apple is storing personal data in the country as part of an effort to speed up iCloud for users that live in that area, Reuters notes.
“China always requires Chinese banks and local telecom operators to store their user data in the country for the purpose of national security,” Sandy Shen, a Gartner analyst, told The Wall Street Journal. “Apple storing its iCloud data in China would help to provide a better user experience as direct connection to the local server would allow faster and more stable access to iCloud services.”
AAPL shares were down slightly as of Friday afternoon.