Apple shares fell for the second day in a row after reports of a ban on iPhone use by government employees in China. The company's shares have lost about 6% in the last two days. They closed Thursday at $177.56, down $5.35 or 2.92%.
Apple's third largest market is China. It accounted for 18% of last year's total revenue of $394 billion. Most of Apple's products are also manufactured in China. The ban on government employees could reduce iPhone sales in China by up to 5%.
Two days ago, the Wall Street Journal reported in a report that China has banned the use of devices from other countries, including the American company Apple. However, this ban will apply only to government officials. Officers have been asked not to bring these devices to the office nor use them for work.
The Chinese government has asked officials to use phones made in the country. According to the report, China has not named any phone manufacturer other than Apple. Till now Apple has not given any response regarding this. At the same time, the Chinese government has also not given any official information about this ban.
China has imposed this ban on the use of iPhone by government officials at a time when the company is going to hold a Wanderlust event in California on September 12. In this event, Apple can also launch Apple Watch Series 9 and Apple Watch Ultra 2 along with iPhone 15 series.
Three months ago, Russia had accused America of spying with iPhone. However, Apple rejected all the allegations. Apple had said, 'We have never tampered with phones in collaboration with the government of any country and never will.’
Apple is considering shifting 18% of global iPhone manufacturing to India by 2025. According to a Bank of America report, the Indian government's Production-Linked Incentive Scheme (PLI) is encouraging Apple to increase manufacturing capacity in the country.
