Shares of Apple fell by 2.9% after reports that China plans to expand its ban on the use of iPhones to government-backed agencies and companies. .
This has raised concerns about Apple's ability to do business in China, its largest foreign market. Chinese sales accounted for about a fifth of Apple's total revenue last year, and analysts estimate that there were more iPhone sales in China than in the United States last quarter. The bans could indicate a change in the Chinese government's stance towards Apple.
The potential iPhone ban comes at an interesting time as Chinese manufacturer Huawei released a new highend flagship smartphone, which is being investigated by the US government. As a result, tech companies and the semiconductor sector also experienced declines in the stock market.
This has raised concerns about Apple's ability to do business in China, its largest foreign market. Chinese sales accounted for about a fifth of Apple's total revenue last year, and analysts estimate that there were more iPhone sales in China than in the United States last quarter. The bans could indicate a change in the Chinese government's stance towards Apple.
The potential iPhone ban comes at an interesting time as Chinese manufacturer Huawei released a new highend flagship smartphone, which is being investigated by the US government. As a result, tech companies and the semiconductor sector also experienced declines in the stock market.