Apple’s market capitalization fell by $200 billion after information about a possible iPhone ban for Chinese officials
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Apple shares decreased yesterday, September 7, by 3%, on Wednesday they also fell – by 4%. Thus, in two days the shares fell by 7%, reducing the company’s market capitalization by $200 billion, to $2.77 trillion. Experts attribute this to the appearance in the media of information that Chinese officials were banned from using iPhones. This happens a few days before the presentation of the new iPhone 15 – the company will present its September 12th.
On Wednesday, The Wall Street Journal reportedthat the Chinese authorities have prohibited officials of ministries, departments and other government bodies from using iPhones for official purposes and bringing them to work. However, it is unknown how widespread this ban is, whether it applies to all officials or only some of them.
For Apple, China is one of the largest markets, accounting for 18% of the company’s revenue. It’s also the company’s fastest-growing market—Apple’s sales here grew 8% last quarter.
According to Bernstein analyst Toni Sacconaghi, such a ban could reduce Apple’s sales in China by 5%, but more importantly, it could be perceived as a signal to other residents of the country.
“Perhaps more importantly, restrictions on iPhone use among government employees could negatively impact sales to all consumers (family members, the general population) and may be part of a broader effort by the Chinese government to promote the use of indigenous technologies,” Mr. Sacconaghi said. Moreover, experts already note increased competition between Apple in China and flagship smartphones from local manufacturers, primarily Huawei.
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