Apple’s stock declines following reports of a Chinese government ban on iPhones.
Apple’s stock has experienced a consecutive two-day decline following reports of a ban on Chinese government workers using iPhones.
The company’s market valuation has decreased by over 6%, equivalent to nearly $200 billion (£160 billion), over the past 48 hours.
China represents Apple’s third-largest market, contributing to 18% of its total revenue in the previous year. Additionally, the majority of Apple’s products are manufactured by its largest supplier, Foxconn, in China.
The Wall Street Journal reported on Wednesday that Beijing had issued a directive instructing central government agency officials not to bring iPhones into their offices or use them for work purposes.
Subsequently, Bloomberg News reported the possibility of extending the ban to include employees at state-owned companies and government-affiliated agencies.
These developments occurred just before the anticipated launch of the iPhone 15 on September 12.
As of now, there has been no official statement from the Chinese government regarding these reports.
Apple currently maintains its position as the world’s most highly valued company, with a market valuation of nearly $2.8 trillion.
The company has not yet responded to the BBC’s request for comment.
Shares in several of Apple’s suppliers have also experienced declines.
Qualcomm, the world’s leading supplier of smartphone chips, saw a drop of over 7% on Thursday.
Shares in South Korea’s SK Hynix recorded a roughly 4% decrease on Friday.
These reports coincide with heightened tensions between Washington and Beijing. This year, Washington, along with its allies Japan and the Netherlands, imposed restrictions on China’s access to certain chip technology.
In retaliation, China restricted the export of two materials crucial to the semiconductor industry.
Additionally, Beijing is reportedly in the process of establishing a new $40 billion investment fund to bolster its domestic chip manufacturing industry.
During US Commerce Secretary Gina Raimondo’s recent visit to Beijing, Chinese tech giant Huawei unexpectedly unveiled its Mate 60 Pro smartphone.
On Friday, the company commenced presales of the Pro+ model of the phone.
According to TechInsights, a Canada-based technology research firm, the phone features a new 5G Kirin 9000s processor, developed for Huawei by China’s largest contract chipmaker, SMIC.
TechInsights analyst Dan Hutcheson described this as a significant achievement, highlighting the progress made by China’s semiconductor industry.
Investment firm Jefferies also commented on this development, describing it as a “major technological breakthrough for China.”
This week, US Congressman Mike Gallagher, who chairs the House of Representatives committee on China, called upon the Commerce Department to further restrict exports to Huawei and SMIC.
