China causes Apple to lose 200 billion in two days
Apple suffered a loss of $200 billion within just two days after reports emerge
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| China causes Apple to lose 200 billion in two days |
that China intends to expand its ban on the use of iPhones within government-backed agencies and companies. This development has raised concerns among investors about Apple's ability to conduct business in the world's second-largest economy. Following the news, Apple's shares dropped by 2.9% on Thursday, marking the company's largest daily fall in over a month. As a result, Apple currently holds the position of the worst performer in the Dow Jones Industrial Average
China stands as Apple's largest foreign market, with approximately a fifth of the company's total revenue coming from Chinese sales last year. While Apple does not disclose specific iPhone sales figures by country, research firm TechInsights estimates that China saw more iPhone sales than the United States in the previous quarter. Furthermore, a significant portion of Apple's iPhones is produced in Chinese factories
Traditionally, Apple has been considered relatively safe from government restrictions in China due to its crucial role in Beijing's economy. However, the recent bans on iPhone usage among government officials and state-backed firms have raised concerns about the government's changing stance towards the tech giant. The Wall Street Journal reported that the ban initially targeted central government officials and was then extended to state-backed firms, including PetroChina, a major energy company with millions of employees
Analysts from Bank of America noted the interesting timing of the potential iPhone ban, as it coincided with the release of a high-end flagship smartphone by Chinese manufacturer Huawei. Furthermore, the US government announced an investigation into Huawei's new device, citing the need for more information regarding its composition and potential bypassing of American semiconductor export restrictions
The news of the potential iPhone ban resulted in a decline for tech companies, with the Nasdaq Composite dropping around 0.9% and the semiconductor sector falling over 2% on Thursday
Apple and China's Ministry of Foreign Affairs have not yet responded to requests for comment on the matter
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