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Apple lost $200 billion in two days on rumours of a Chinese iPhone ban.

(Qnnflash) – On Thursday, the stock price of Apple saw a decline of 2.9% subsequent to the release of news indicating China’s intention to extend the prohibition on the utilization of iPhones to encompass government-affiliated entities and corporations.

Investors are expressing concerns over the operational capabilities of the world’s most valuable publicly traded corporation in the context of conducting commercial activities within the world’s second-largest economy.

On Wednesday, the stock of Apple Inc. (AAPL) saw a significant decline, marking its most substantial daily decrease in more than a month. Over the course of a 48-hour period, the corporation incurred a substantial loss of over $200 billion, rendering it the poorest performing entity inside the Dow Jones Industrial Average at the moment.

The imposition of prohibitions might potentially serve as a foreboding indication for Apple.

China serves as the primary overseas market for the company’s products, with Chinese sales accounting for around 20% of the company’s overall revenue in the previous fiscal year. Apple does not disclose the number of iPhone sales by country, but according to estimates from TechInsights, a research firm, China had more iPhone sales during the previous quarter than the United States. Apple also produces the vast majority of its iPhones in Chinese assembly plants.

The company is headquartered in Cupertino, California. According to Brandon Nispel, an analyst at KeyBanc Capital, Apple holds a significant position in the economy of Beijing. This statement was made on Wednesday. Due to this factor, the corporation has always been perceived as reasonably secure in China with regards to government-imposed limitations. The author raised a significant inquiry in relation to the aforementioned imposed prohibitions: “Is there a shift in the government’s position?”

According to a recent article by the Wall Street Journal, it has been seen that China has implemented a prohibition on the use of iPhones among central government employees. Furthermore, it has been noted that managers have been communicating this limitation to their respective staff members through chat groups or in-person meetings.

According to a report by Bloomberg on Thursday, the aforementioned limitations have been expanded to encompass state-backed enterprises, such as PetroChina, a prominent energy corporation that oversees a significant portion of the Chinese economy and employs a substantial workforce.

According to a note written by analysts at Bank of America on Thursday, the possibility of an iPhone ban coincides with the recent launch of a premium flagship smartphone by Chinese company Huawei. According to observers, the timing of the event is noteworthy.

On Tuesday, the United States government announced its initiation of an investigation into the recently released smartphone. During a White House news conference, National Security Adviser Jake Sullivan expressed the need for further information regarding the specific nature and composition of a newly developed chip. This information is crucial in order to ascertain whether any parties have circumvented the limits imposed by the United States on semiconductor exports.

The Nasdaq Composite index lost 0.9% on Thursday, and the semiconductor sector saw a decrease of almost 2%. This indicates a decline in the stock prices of technology companies.

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