Apple’s stock has experienced a second consecutive day of decline following reports that Chinese government employees have been instructed not to use iPhones. The company’s market valuation has dropped by over 6%, amounting to nearly $200 billion (£160 billion), in just two days.
China represents a significant market for the technology giant, accounting for 18% of its total revenue in the previous year. Additionally, most of Apple’s products are manufactured in China by its primary supplier, Foxconn.
The Wall Street Journal first disclosed that Beijing had issued orders to central government agency officials, instructing them not to bring iPhones into the workplace or use them for work purposes. Subsequently, Bloomberg News reported that this prohibition might extend to employees at state-owned companies and government-affiliated entities.
These developments have arisen in the lead-up to 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 holds the highest stock market valuation globally, with a valuation close to $2.8 trillion. The company has not responded to inquiries from the BBC regarding these recent developments.
The stock prices of several of Apple’s suppliers have also been impacted. Qualcomm, the world’s largest supplier of smartphone chips, witnessed a decline of over 7% on Thursday. Similarly, shares in South Korea’s SK Hynix dropped approximately 4% on Friday.
These developments occur amidst heightened tensions between Washington and Beijing. This year, the United States, along with its allies Japan and the Netherlands, imposed restrictions on China’s access to certain chip technologies. China responded by limiting exports of two critical materials essential to the semiconductor industry. In addition, Beijing is reportedly preparing a $40 billion investment fund aimed at bolstering its chip manufacturing sector.
Recently, during a visit by US Commerce Secretary Gina Raimondo to Beijing, Chinese tech giant Huawei unexpectedly unveiled its Mate 60 Pro smartphone. The device features a new 5G Kirin 9000s processor, developed for Huawei by China’s largest contract chipmaker, SMIC. Analysts have hailed this as a significant achievement for China’s semiconductor industry.
