Apple stock falls after possible iPhone ban in Chinese administrations

2023-09-08 08:27:42

Shares of Apple, the world’s largest market capitalization, lost almost 3% on Thursday following reports that China has banned the use of the iPhone in certain administrations and business companies. State.

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Apple stocks are losing ground. The world’s largest stock market capitalization fell by almost 3% on Thursday, September 7, following reports that China has banned the use of the iPhone in certain administrations and state companies.

If extended, such measures would pose a challenge for the iPhone maker, as China is its largest overseas market, but also largely its main production center.

Over two days, the title of the Apple firm fell by more than 6%, returning to its level of August 25 and causing its market capitalization to melt from more than 200 billion dollars to 2,776 billion dollars.

Prohibition of professional use of iPhone

After a decline of 3.6% on Wednesday, the action of the Cupertino (California) group lost another 2.92% on Thursday to $177.56.

A Wall Street Journal article published Wednesday claimed that authorities have banned employees of government agencies from using iPhones professionally, or even, for owners of Apple’s smartphone, from taking it to their workplaces. of work.

Questioned Thursday by AFP, Apple had not yet commented. “Apple’s growth depends a lot on China and if Beijing’s repression intensifies, this could pose a big problem for a series of technology companies that also depend on China,” said Edward Moya, analyst for Oanda .

Investors fear Chinese restrictions could hamper Apple’s revenue prospects.

However, for Dan Ives of Wedbush, the presence of iPhone in Chinese administrations represents only a small share of Apple’s market in China.

New export controls

“At worst”, this would concern “500,000 devices out of the approximately 45 million which will be sold in China over the next twelve months”, assures the analyst.

These Chinese measures come as Beijing has already asked its central administration, in 2022, to change its foreign brand IT equipment for computers “made in China”, according to press information.

For its part, the Biden administration implemented new export controls late last year aimed at limiting Beijing’s ability to buy and manufacture high-end chips used in military applications. .

The White House did not immediately comment on the Chinese authorities’ decision on Thursday.

With AFP

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