Apple Inc (NASDAQ:AAPL) Starts Storing Its Users’ Information- Lists China Telecom Corp Ltd (0728.HK) As Its Server Provider

One of the biggest tech giants, Apple Inc (NASDAQ:AAPL), has started storing users’ information and data on its servers located in the region of China.

This storage of information by Apple Inc (NASDAQ:AAPL) marks the departure of the company from the privacy and censorship laws of the country. It is important to note here that some of the tech companies, including Google Inc (NASDAQ:GOOG), refused to create its servers on the Chinese soil due to the privacy laws of the country.

Apple Inc (NASDAQ:AAPL) said that it had taken this step in order to improve the speed of its iCloud services. The iCloud services of the company allow the users to save their data, including their emails and pictures, to the servers- meaning that the speed of the service depends on the proximity of data centers to the users.

Apple Inc (NASDAQ:AAPL), on August 15, 2014, disclosed that the data of the clients will be saved on one of the biggest wireless carrier companies of the country China, Telecom Corp Ltd (0728.HK)

The company said that it takes the privacy and security of its users very seriously and that is why it has added the Chinese wireless company to its data provider list. The company further said that this step was necessary in order to improve the efficiency of the server by increasing the bandwidth.

Apple Inc (NASDAQ:AAPL) further said that all the information would be saved in the encrypted form and China Telecom Corp (0728.HK) would have no access to the data.

A representative of the company, who was familiar with the matter, said that data would be saved offshore and thus China Telecom would have no access to the encryption keys of Apple Inc (NASDAQ:AAPL).

Moreover, Apple Inc (NASDAQ:AAPL) disclosed that it has derived certain encryption systems that even the company itself cannot unlock. However, some skeptics are confident that Apple Inc (NASDAQ:AAPL) would hand over the data to the Chinese government, if the government asked for it.

The director of Danwei.com, Jeremy Goldkom, said that the company would have a little say in the matter if the authorities asked for the user info, for the foreign companies, in order to operate their business in the country of China, need to comply with the requests of the authorities.

The director of the Chinese research firm further said that Apple Inc (NASDAQ:AAPL) would be risking its business if they did not list a Chinese server company for the storage of users’ data.

The stocks of Apple Inc (NASDAQ:AAPL), in the last trading session, opened at a price of $97.90 and closed at a price of $97.98, after hitting the highest figures of $98.19. The company has a market capitalization of $583.82 billion with a price to earnings ratio of 15.82.

The stock prices of China Telecom Corp Ltd (0728.HK), on August 15, 2014, opened at $4.18 and closed at $4.14. The company has a price to earnings ratio of 15.31. As far as the market capitalization of the company is concerned, it is reported at $58.01 billion.