On Thursday, Apple Inc. faced a significant setback as its shares tumbled by 2.9% in response to reports that China is considering an expansion of its ban on the use of iPhones within government-backed agencies and companies. This news has sent shockwaves through the tech giant’s investors, who are growing increasingly concerned about Apple’s ability to maintain its foothold in the world’s second-largest economy.
Billions of dollars lost
For Apple (AAPL), this downturn marked its most substantial daily decline in over a month, resulting in a staggering loss of approximately $200 billion in just two days. These developments have further compounded the company’s woes, positioning its stock as the worst performer in the Dow Jones Industrial Average.
The potential expansion of iPhone bans within key sectors in China poses a foreboding sign for Apple’s future in this crucial market. Notably, the tech giant produces a significant portion of its iPhones in Chinese factories, making it vulnerable to disruptions stemming from strained diplomatic relations and regulatory pressures between China and the United States.
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Apple’s shareholders and executives will undoubtedly be closely monitoring the situation as it unfolds, hoping for a swift resolution to these challenges that have left the company on shaky ground in a pivotal market.
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