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Following recent reports from The Wall Street Journal and Bloomberg News, shares of Apple have dipped for two consecutive days. These reports suggest that the Chinese government has instructed officials in central agencies and state-owned companies to cease using iPhones for work purposes. Although the reach of this reported ban remains unclear, it represents another chapter in the ongoing tech skirmish between the United States and China.

The Fallout: Immediate Impact on Apple Shares and Supplier Stocks

Apple’s stock market valuation fell by more than 6%, or nearly $200 billion, in just two days following the reports. The company is particularly vulnerable in China, its third-largest market, which accounted for 18% of its total revenue last year. Shares of Apple suppliers, such as Qualcomm and South Korea’s SK Hynix, have also taken hits.

The Global Landscape: US-China Tech Relations and Tensions

The news comes amidst rising tensions between the US and China over technology. Both nations have imposed restrictions on each other’s tech industries, including Washington limiting China’s access to some chip technology. This escalating conflict has geopolitical implications, especially as China prepares a new $40 billion investment fund aimed at boosting its chip-making industry.

The Huawei Factor: Rising Local Competition Against Apple

While Apple grapples with these challenges, Huawei, a leading Chinese tech giant, has seized the opportunity to introduce its Mate 60 Pro smartphone. With a chip manufactured on China’s mainland, Huawei’s new offering poses a significant threat to Apple in one of its most critical markets.

Regulatory Backdrop: Tech Giants Under Government Scrutiny

It’s worth noting that Apple is not the only tech company facing regulatory challenges. Both in the United States and Europe, leading tech firms like Amazon, Google, and Microsoft have come under scrutiny for alleged anti-competitive behavior.

Looking Ahead: The Future of Apple in China

Apple’s immediate future in China is uncertain, especially as it prepares to launch its iPhone 15. If the reported restrictions on iPhone use among government employees send signals for broader public adoption of domestic technology, Apple could face even more significant challenges in the Chinese market.

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Peres Daily works as an independent organization dedicated to cater national and international trending news stories. Peres Daily was founded by Michael Peres (Mikey Peres) in 2020, and covers a wide range of topics including politics, daily events, cryptocurrency, blockchain, and economics.