Apple shares fall down
07 Sep 2023
Following reports of significant Chinese restrictions on iPhones at government offices and state-backed entities, Apple shares plunged sharply for a second consecutive session on Thursday.
In late-morning trading, the largest publicly traded company in the world’s stock was down 2.8% to $177.79.
After a Wall Street Journal report that China banned Apple smartphones from central government agencies, shares fell 3.6% on Wednesday.
That was followed Thursday by a Bloomberg report that China wanted to grow the boycott to government-upheld organizations and state organizations, widening the impact of the strategy in a midway-arranged economy.
AFP has yet to receive any comments from Apple or Chinese officials.
The tensions between Beijing and Washington are growing at an alarming rate.
According to the Bloomberg report, Chinese state media hailed the release of a Huawei smartphone with a made-in-China processor last week as a “triumph” in the wake of US sanctions.
Apple shares fall down up to $200bn
China contributed $15.8 billion to Apple’s revenue in the most recent quarter or nearly 20% of total revenue. Executives cited the rise in sales from China when overall sales were down.
According to Patrick O’Hare, an analyst at Briefing.com, the situation with Apple has implications for other tech companies.
O’Hare stated, “The worry for the market is that, if China deliberately chooses to make business difficult for a company like Apple, which has a good and important working relationship in China, then it can do so for many other US companies doing business in China.” This is because Apple has a good working relationship with China.
However, Wedbush Protections expert Dan Ives assessed that a Chinese government boycott would influence under 500,000 iPhones of about 45 million projected to be sold in the country the following year.
“We accept notwithstanding the noisy commotion Apple has seen monstrous offer additions in the China cell phone market,” Ives said, adding that rising deals give Apple “gradual force on this front.”
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