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The Android security updates and major version updates are completely open source. It implies that they don't receive early access to either, so maybe they wouldn't be able to get out security updates on time, but it really doesn't take a whole month to integrate and test those.
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Apple's devices are manufactured in China via Foxconn and heavily rely on their expertise. It's not a dumb manufacturing pipeline using solely Apple technology. China retaliating to this could involve seriously disrupting Apple's manufacturing, if they wanted to play this game.
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