Apple Stock Plunges Following Chinese Government’s Ban on iPhones at Work
Apple Inc. experienced a significant decline in its stock value after reports emerged that Chinese government agencies have prohibited their staff from using iPhones and other foreign-branded devices during office hours.
Details of the Ban
- Employees at some central government regulators have been instructed, through chat groups and meetings, to avoid bringing foreign-branded gadgets to the office.
- The exact extent of these orders remains unclear.
Stock Market Reaction
As a result of this news, Apple’s stock price dropped by as much as 3.3% to $183.53 in New York on Wednesday. This decline marks the company’s biggest intraday drop since August 4th. Apple’s stock had been performing well throughout the year, with a 46% gain prior to Tuesday’s close, largely driven by the tech sector’s overall success.
Apple’s Popularity in China
Despite recent tensions between the US and China’s technology industries, Apple continues to enjoy widespread popularity in China, its largest international market. iPhones remain among the best-selling smartphones in the country and are commonly used in both the government and private sectors.
Reducing Reliance on Foreign Technology
China has been discouraging the use of foreign devices, especially within sensitive agencies, as part of its effort to reduce reliance on US technology. In 2022, Beijing ordered central government agencies and state-backed corporations to replace foreign-branded personal computers with domestic alternatives within two years, demonstrating its aggressive approach to removing key overseas technology from critical organs.
Impact on Apple
Despite these measures, China remains a significant market for Apple. In fact, the country played a crucial role in offsetting Apple’s generally sluggish performance in the last quarter. As the company prepares to unveil its latest iPhones next week, it hopes to capitalize on the upcoming holiday season, which traditionally represents its highest sales period of the year.
The Chinese government’s ban on iPhones and foreign-branded devices at work has caused a sharp decline in Apple’s stock value. However, Apple’s popularity in China and the upcoming release of new iPhones provide hope for a successful holiday sales period.
–With assistance from Jeran Wittenstein.
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