Apple shares fall after China bans iPhone use in government

by Jerry

After China banned the use of iPhones in government bodies, Apple’s shares opened the day lower. The assets of American big tech fell just over 3.3% from yesterday to today. On Wednesday, when the Chinese government reported the news to its civil servants, Apple’s stock was at $182, while it is now trading at $176.

According to what was published by the Wall Street Journal, Chinese government officials are prohibited from using iPhones for activities related to their service. But even if that doesn’t stop them from using an Apple phone for personal activities, Beijing’s action will impact revenue at big tech, which has had 18 percent of its profits over the past five years coming from China.

Apple suffers fall before announcement of iPhone 15
China’s decision comes days before Apple announces the new iPhone 15 line, which is expected to be unveiled on the 12th. Historically, the days leading up to the launch of the brand’s smartphones are one of rising stock prices. In 2023, the landscape has changed.

The move was meant to be just a “revenge” by the Chinese government against U.S. sanctions and appreciation of the country’s handset makers — including Huawei recently launched its smartphone with 7nm chip made with its own technology. However, it ended up affecting Apple ahead of its main annual announcement.

Last year, TikTok, a Chinese app, was banned from smartphones used by the U.S. government. State employees are unable to install the app on their professional devices. The measure aims to prevent possible spying on government apparatuses.

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