Apple losses USD 200 billion in two days due to reports of iPhone ban in China
China's reported ban on the iPhone caused billions of losses for Apple in just two days.
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Impact of possible iPhone ban in China
According to a report by CNN, Apple logged its largest daily fall in over a month on Wednesday following reports on China expanding a ban on the use of iPhones to government-backed agencies and companies.
It lost about USD 200 billion (around PHP11.3 trillion) in two days. Apple stock is also currently the worst performer in the Dow Jones Industrial Average.
A Wall Street Journal report that said China had implemented the ban among central government officials. It also noted a Bloomberg article that said this was extended to state-backed firms.
Beijing is Apple's largest foreign market, with Chinese sales representing about a fifth of the company’s total revenue in 2022.
According to analysts at research firm TechInsights estimate, there were even more iPhone sales in China than in the United States last quarter. The company also produces the majority of its iPhones in Chinese factories.
KeyBanc Capital analyst Brandon Nispel also said that Cupertino, California-based Apple plays an important role in Beijing's economy and "has historically been viewed as relatively safe in China from government restrictions."
He said the reported ban asks "Is the government changing its stance?"
Analysts at Bank of America said the timing of the possible ban is "interesting" given the recent release of Chinese brand HUAWEI's Mate 60 Pro.
US national security adviser Jake Sullivan said in an earlier briefing that Washington needs "more information about precisely its character and composition" referring to the HUAWEI Mate 60 Pro. This will be to determine if parties bypassed American restrictions on semiconductor exports to create the new chip, he added.
CNN said it has reached out to Apple and China's Ministry of Foreign Affairs but has not received a response.
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