2023-09-08 03:55:00
The world’s largest market capitalization is rocking. Apple shares fell this Thursday by almost 3%, which still represents more than 200 billion dollars to 2.776 billion dollars. In question, information initially published by the Wall Street Journal according to which China has banned the use of the iPhone in certain administrations and state companies.
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If confirmed and extended, such measures would threaten the iPhone maker’s sales in its largest overseas market but also its main production center. Over two days, the firm’s stock lost more than 6%, returning to its level of August 25.
According to the Wall Street Journal published on Wednesday, Beijing authorities have banned employees of government agencies from using iPhones professionally, or even, for owners of Apple smartphones, from taking them to their workplace. Investors fear Chinese restrictions might hamper Apple’s revenue prospects.
Apple depends on the Chinese market to produce and sell its iPhones
« Apple’s growth depends a lot on China and if Beijing’s crackdown intensifies, it might pose a big problem for a range of technology companies that also depend on China », observes Edward Moya, analyst for Oanda.
Analyst Dan Ives of Wedbush puts these fears into perspective. The presence of iPhone in Chinese administrations only represents a small share of Apple’s market in China. “ At worst ”, this would concern “ 500,000 devices out of the approximately 45 million that will be sold in China over the next twelve months », he nuances. In 2022, Beijing has already asked its central administration to change its foreign-brand IT equipment for “ made in China », According to press information.
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This comes in a context of restrictions by Western administrations regarding Chinese technological products or services. The Biden administration also 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 has not commented on the decision by Chinese authorities.
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