While the use of iPhones or foreign products was already prohibited for employees in critical government agencies in China, the scope of this ban has recently been drastically expanded to include government-sponsored institutions and government companies beyond sensitive departments. After the iPhone ban, Apple’s shares dropped significantly.iPhone ban cost Apple $200 billion
While many Western companies struggle in the country, China is a big market for Apple. CEO Tim Cook praised the firm’s relationship with China in March, describing sales in the country as the “highest” event of the last quarter. China also accounts for 18 percent of Apple’s iPhone revenues. However, this affinity means nothing when it comes to Beijing’s exclusion of foreign products in favor of its own technology.After the ban decision, Apple’s share prices fell by 10 percent in two days. After the stock market crash, Apple lost more than $200 billion. The market value of the company decreased to 2.78 trillion dollars.
It is noteworthy that this ban by China came years after the USA imposed heavy sanctions on Huawei and other Chinese companies. Additionally, many US government employees are prohibited from installing TikTok on their work devices, and a recent survey suggests that 50% of people want the app banned nationwide. The US also continues to hit China’s chip industry by restricting its access to advanced chip-making tools.
58704
