Microsoft Corp. (NASDAQ:MSFT) has reportedly instructed its employees in China to use Apple Inc. (NASDAQ:AAPL) iPhones for work, effectively banning Android-powered devices.

What Happened: Microsoft communicated to its China-based employees that they would only be permitted to use Apple devices for work purposes starting in September, reported Bloomberg, which cited an internal memo.

This decision is part of the Redmond-based software giant's global Secure Future Initiative, aiming to ensure that all employees use the Microsoft Authenticator password manager and Identity Pass app.

The move underscores the fragmented nature of Android app stores in China and the growing disparities between Chinese and foreign mobile ecosystems.

Google Play is not available in China, so local smartphone makers like Huawei Technologies Co. and Xiaomi Corp. operate their platforms. Microsoft has decided to block access from these devices to its corporate resources due to the absence of Google's mobile services in the country.

Employees using Android devices, including those made by Huawei or Xiaomi, will be provided with an iPhone 15 as a one-time purchase. The company will make iPhones available for collection at various hubs across China, including Hong Kong, where Google's services are accessible.

Microsoft did not immediately respond to Benzinga's request for comment.

Why It Matters: This move by Microsoft is significant in the context of the ongoing U.S. investigation into Chinese telecom giants over potential data threats. The U.S. government is scrutinizing China Mobile, China Telecom, and China Unicom for possible misuse of American data, a concern that has also been echoed in Microsoft's decision.

This decision comes in the wake of Microsoft's increased global security measures, following repeated attacks from state-sponsored hackers. In January, a Russia-linked breach affected dozens of U.S. government agencies, including the State Department.

Moreover, this development also highlights the complexities of the Chinese tech market, where companies like Apple have had to comply with the government's security concerns and remove certain apps from their app store. This move by Microsoft further underscores the challenges foreign tech companies face in navigating the Chinese market.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote