Apple shares have plunged for the second time in a row on Wall Street after reports emerged of significant iPhone-related restrictions in China on government offices and state-backed entities.
On Wednesday, Apple shares suffered a 3.6% decline after The Wall Street Journal reported that Chinese authorities had banned employees of government agencies from using iPhones professionally and from bringing these devices to their workplaces. These restrictions, which directly affected Apple’s popular smartphone, raised concerns among investors and contributed to a significant decline in the company’s share value.
On Thursday, Bloomberg News reported that China had plans to extend this ban to government-backed agencies and state-owned companies, which would broaden the reach of this policy in a centrally planned economy. As a result, Apple shares suffered a further 2.8% drop in morning trading, reaching $177.79 per share.
This situation has arisen at a time of rising tensions between China and the United States, adding additional uncertainty to Apple’s financial situation in one of its largest markets. So far, neither Apple nor Chinese officials have issued official comments in response to this news.
The impact of these restrictions on the use of the iPhone in China and its possible expansion at the government and state level has raised concerns among investors about the future of Apple’s operations in the Asian country. This situation underlines the importance of international trade relations and the volatility of global markets in the current context of geopolitical tensions.