Apple’s Market Value Could Plummet $200 Billion Following iPhone Ban in China
Bloomberg reported that Apple is on track to lose $200 billion of its market value just two days after China announced it would expand the iPhone ban to include government-backed agencies and state-owned companies.
The company’s shares fell 5.1 percent, bringing its two-day drop to 6.8 percent.
Adding to Apple’s problems is the rise in US Treasury yields on bond sales amid fears that the Federal Reserve will have to step up its fight against inflation.
Analyzing the Ban’s Timing
In this context, analyst Womsi Mohan noted that “the timing of the ban is interesting,” in parallel with the recent launch of Huawei’s cutting-edge 5G smartphone.
The new device also shows that Beijing is making early progress in a nationwide campaign to sidestep U.S. efforts to curb its growth, as the phone is powered by 7nm chips from Semiconductor Manufacturing International Corp.
Beijing’s move to impose a ban could also affect a number of other US tech companies that depend on sales and production in China.
China’s Ban on Apple iPhones
For its part, the US Wall Street Journal reported that China has ordered central government officials not to use Apple iPhones and other foreign-brand devices at work or bring them into the office, sources familiar with the situation said…
Beijing banned government officials in some departments from using iPhones at work a few years ago, sources said, but the ban has now been expanded.