Chinese media reported that maps along with the new iPhone was censored to comply with the official stance of the Chinese government on border divisions. Some other media reported that the iPhones were imported to China with the PRC propaganda Edition of Google Maps. For working in China, Google agreed to Chinese government that it will show the areas of dispute between China and another country to be part of China.
This is not the first time the Google shows Indian states as a part of China.
Earlier in Aug 2010, Google Insights for Search, a tool which
shows search volume patterns across specific regions, showed Indian
map without Pakistan Occupied Kashmir (PoK).
Read Google China map shows Arunachal as part of China
In Oct 2009, Google maps for Chinese users showed Arunachal Pradesh and parts of Kashmir as a part of China, while they showed it as a part of India for Indian users.