Apple has experienced a second consecutive day of stock price declines following reports of a ban on Chinese government workers using iPhones. The tech giant’s market valuation has dropped by over 6%, amounting to nearly $200 billion, in just two days.
China is Apple’s third-largest market, accounting for 18% of its total revenue in the previous year. It’s also where the majority of Apple’s products are manufactured by Foxconn, its largest supplier.
Chinese Government’s iPhone Ban
Reports emerged that Beijing authorities have instructed central government agency officials not to bring iPhones into their offices or use them for work. Furthermore, there are indications that this ban might extend to workers at state-owned companies and government-backed agencies.
While iPhones were already prohibited in some agencies, these reports suggest that the ban has now been expanded. It remains unclear how widely these instructions have been distributed within Chinese officialdom.
These developments come just ahead of Apple’s highly anticipated iPhone 15 launch, scheduled for September 12. The uncertainty created by the reported ban could potentially impact the iPhone’s reception in the Chinese market.
Chinese Social Media Reactions
On Chinese social media, some individuals claiming to work for state-owned companies have shared that they were told to stop using Apple devices by the end of September. This has led to concerns about what devices they will use for work.
As of now, there has been no official statement from the Chinese government regarding these reports, and Apple has not responded to inquiries.
The impact of these developments has extended beyond Apple’s stock, affecting shares of some of its suppliers. Qualcomm, the world’s largest supplier of smartphone chips, saw a more than 7% drop in its stock price on Thursday. South Korea’s SK Hynix also experienced around a 4% decline on Friday.
Increasing US-China Technology Tensions
Tensions between the US and China in the technology sector have been escalating, with both nations imposing various restrictions. These restrictions include limitations on chip technology access and key material exports. China is also reportedly creating a $40 billion investment fund to bolster its chip manufacturing industry.
The recent unveiling of Huawei’s Mate 60 Pro smartphone, featuring a new 5G Kirin 9000s processor developed by China’s largest contract chipmaker SMIC, signifies notable progress in China’s semiconductor industry.
As the US continues to consider further restrictions on exports to Huawei and SMIC, the tech industry’s global landscape remains complex and competitive.
