For the second consecutive day, Apple’s shares have seen a decline following reports that Chinese government employees have been prohibited from using iPhones.
Over the past two days, the technology company’s stock market valuation has plummeted by over 6%, equating to nearly $200 billion (£160 billion).
China stands as Apple’s third-largest market, contributing to 18% of its total revenue in the previous year. Additionally, it is where the majority of Apple’s products are manufactured, with Foxconn, its largest supplier, playing a pivotal role.
The Wall Street Journal revealed on Wednesday that Beijing had issued a directive instructing officials from central government agencies not to bring iPhones into their workplaces or utilize them for professional purposes.
Subsequently, Bloomberg News reported the following day that the ban might be extended to encompass employees at state-owned entities and government-affiliated organizations. These reports emerged just ahead of the anticipated launch of the iPhone 15, scheduled for September 12.
To date, there has been no official statement from the Chinese government addressing these reports. Apple currently boasts the world’s highest stock market valuation, standing close to $2.8 trillion.
The shares of certain Apple suppliers have also experienced declines. Qualcomm, the world’s leading supplier of smartphone chips, witnessed a drop exceeding 7% on Thursday. On Friday, shares in South Korean firm SK Hynix dropped by approximately 4%.
These developments coincide with ongoing high tensions between Washington and Beijing. This year, the US, in conjunction with allies Japan and the Netherlands, imposed restrictions on China’s access to specific chip technologies.
In response, China introduced limitations on the export of two materials that are crucial to the semiconductor sector.
Furthermore, Beijing is reportedly preparing a $40 billion investment fund to bolster its chip manufacturing industry.
Last week, during a visit to Beijing by US Commerce Secretary Gina Raimondo, Chinese tech giant Huawei unexpectedly unveiled its Mate 60 Pro smartphone.
On Friday, presales for the Pro+ variant of this phone were initiated.
According to the Canada-based technology research firm TechInsights, the phone incorporates a novel 5G Kirin 9000s processor, developed for Huawei by China’s largest contract chipmaker, SMIC.
TechInsights analyst Dan Hutcheson remarked that this development “demonstrates the technical advancements achieved by China’s semiconductor industry.”
Jefferies, an investment firm, described this as a “significant technological milestone for China.”
This week, US Congressman Mike Gallagher, who chairs the House of Representatives committee on China, urged the Commerce Department to further restrict exports to both Huawei and SMIC.
