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DIMAPUR — Apple's stock has faced a second consecutive day of decline amid reports that Chinese government employees have been prohibited from using iPhones, according to media sources.
Over the past two days, the tech giant's market capitalisation has plummeted by over 6%, equivalent to nearly $200 billion (£160 billion), as reported by the BBC. China, constituting Apple's third-largest market, contributed 18% of its total revenue last year. Additionally, it is the primary location for the production of most Apple products through its major supplier, Foxconn.
The Wall Street Journal disclosed that Beijing had issued directives to officials in central government agencies, instructing them not to carry iPhones into their workplaces or employ them for official purposes. Subsequently, Bloomberg News indicated that this prohibition might extend to employees of state-owned enterprises and government-affiliated institutions.
These developments unfolded in anticipation of the forthcoming launch of the iPhone 15, scheduled for September 12, according to the BBC. Thus far, the Chinese government has not issued an official statement regarding these reports.
Apple currently boasts the world's highest stock market valuation, hovering at nearly $2.8 trillion, according to the BBC. Concurrently, shares in some of Apple's suppliers have also taken a hit. Qualcomm, the largest supplier of smartphone chips globally, saw a decline exceeding 7% on Thursday. Similarly, South Korean company SK Hynix experienced a roughly 4% drop in shares on Friday.
These events occurred amid ongoing high tensions between Washington and Beijing.