Apple shares fell for the second day in a row, after reports that the China banned government employees from using iPhones. Apple’s value fell by 6%, which translates to about $200 billion. It is worth noting that the Chinese market is the third largest for the Cupertino company, accounting for 18% of its total revenue last year. Let’s take the things from the beginning.
On Wednesday, the Wall Street Journal revealed that Beijing has ordered government employees not to bring iPhones into their workplaces or use them for business purposes. On Thursday, Bloomberg News reported that the ban may be extended to employees of state-owned companies and government-related agencies.
There has been no official response from the Chinese government to these reports, and Apple has not offered a statement either. The fall in its shares Apple also involved some of its suppliers. Qualcomm lost 7% of its value on Thursday, while shares of South Korea’s SK Hynix also fell 4% today.
It is recalled that China is preparing to invest $40 billion in the development of the domestic chip industry. Following the unveiling of the Huawei Mate 60 Pro with 5G capabilities, the US Senate is pushing the Commerce Department to extend export restrictions on Huawei and SMIC.
Source: News Beast
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