- Apple shares fell by more than 7% on Thursday, September 8, 2023, after Bloomberg News reported that China plans to expand a ban on the use of iPhones to government-backed agencies and state companies.
- The ban is reportedly due to security concerns, as the Chinese government is worried that iPhones could be used to spy on its citizens.
- The ban could have a significant impact on Apple’s business in China, as the country is one of its biggest markets.
- Apple’s market capitalization has already fallen by about $194 billion in just two days, wiping out more than half of its gains since the start of the year.
- The news is a reminder of the risks that Apple faces in China, a country where it has been under increasing scrutiny from the government.
Here are some possible reasons why China is expanding the ban on the use of iPhones:
- The Chinese government may be concerned about the security risks of using iPhones. iPhones have been known to be used by the US government to spy on its citizens, and the Chinese government may be worried that the same could happen to them.
- The Chinese government may also be trying to promote its own domestic smartphone brands. China has a number of homegrown smartphone makers, such as Huawei and Xiaomi, and the government may be hoping to boost their sales by making it more difficult for people to use iPhones.
- The Chinese government may also be trying to pressure Apple to comply with its demands. Apple has been criticized by the Chinese government for not complying with some of its censorship requirements, and the government may be hoping that by banning iPhones, it can force Apple to change its behavior.
It is still too early to say what the long-term impact of the ban will be on Apple’s business in China. However, the news is a significant setback for the company, and it is likely to weigh on its stock price in the near future.