Apple’s stock took a hit, dropping 2.9% in value after news broke that China is expanding its ban on the use of iPhones among government-affiliated organizations and companies.
This development has raised concerns among investors about Apple’s ability to conduct business in China, which is the world’s second-largest economy.
In the span of just two days, Apple lost around $200 billion in market value, making it the worst-performing stock in the Dow Jones Industrial Average.
These bans have raised questions about Apple’s future in China, a critical market for the company.
China is a significant market for Apple, accounting for roughly one-fifth of its total revenue last year.
While Apple doesn’t disclose country-specific iPhone sales figures, experts estimate that more iPhones were sold in China than in the United States during the last quarter.
Additionally, most iPhones are manufactured in Chinese factories.
Historically, Apple has enjoyed a relatively stable position in China due to its contribution to Beijing’s economy.
However, these recent bans have prompted concerns about a potential shift in the Chinese government’s stance towards the company.
According to reports from the Wall Street Journal and Bloomberg, China initially banned the use of iPhones for central government officials and later extended the ban to state-backed firms, including major corporations like PetroChina.
This move affects millions of workers and significant sectors of China’s economy.
Analysts have noted that these iPhone bans come shortly after the release of a high-end flagship smartphone by the Chinese company Huawei.
The timing of these events has raised eyebrows in the tech industry.
In a related development, the U.S. government announced an investigation into Huawei’s new smartphone due to concerns that it may involve bypassing American restrictions on semiconductor exports.
This news had a negative impact on tech companies, with the Nasdaq Composite dropping about 0.9%, and the semiconductor sector falling over 2%.
Apple has yet to respond to these reports, and CNN’s attempts to contact both Apple and China’s Ministry of Foreign Affairs have gone unanswered.
