China’s ban on iPhones in government offices significantly affects Apple’s stock price.
This week, Apple Inc.’s stock fell after Chinese officials stopped their employees from using iPhones because they could threaten national security.
Reports that Chinese government agencies have told their employees not to use iPhones for work caused Apple Inc.’s stock to drop the most monthly.
According to sources cited by The South China Morning Post, these orders were given to people who work in ministries that deal with investment, trade, and foreign affairs in August. Importantly, these restrictions did not apply to all government departments, and they only affected iPhones, which were made in California. Other smartphones made by foreign companies were not affected.
Insiders told The Wall Street Journal that some workers of central government agencies were told through chat groups and meetings to keep their iPhones away from the office.
Wednesday in New York, Apple’s stock fell 3.6% to $182.91, which was the most significant drop in a single day since August 4. Before this drop, Apple’s stock value had increased by 46% this year; this was part of a more considerable rise in tech stocks.
Even though tensions between the US and China are rising in the tech industry, Apple is still very popular in China, its biggest market outside the US. iPhones from Apple are some of the most popular phones in the country. Both the government and private businesses use them.
However, China’s sensitive government offices have long discouraged using foreign-made devices, especially since Beijing has been working harder to stop relying on US technology in recent years.
Beijing told central government offices and state-backed companies in 2022 that they had to replace foreign-brand personal computers with domestic ones within two years; this was part of a solid effort to stop relying on foreign technology.
Even though tensions are still high, Apple continues to rely significantly on China as a place to make its products and as a big market for them. Earlier this year, when CEO Tim Cook went to China, he talked about how important this connection was by calling it “symbiotic.”
China was also a big part of Apple’s recent quarterly results, which helped make up for a slow time overall. The company is getting ready to show off its newest iPhones next week; this will set the stage for the Christmas quarter, usually its most significant sales time.