Apple is facing a potential loss of $200 billion in market value in just two days following China’s announcement of an expanded ban on iPhones, including government-supported agencies and state-owned companies, according to Bloomberg.
The company’s stocks plunged by as much as 5.1%, extending a two-day decline to 6.8%.
Apple’s woes have been compounded by rising US Treasury bond yields as bonds are being sold amid concerns that the Federal Reserve will intensify its battle against inflation.
In this context, analyst Amsi Mohan noted the “interesting timing” of the ban, coinciding with Huawei’s recent launch of a cutting-edge 5G smartphone.
The new device is powered by 7-nanometer chips from Semiconductor Manufacturing International Corp, indicating Beijing’s early progress in a national campaign to circumvent American efforts to contain its rise.
Beijing’s move towards a ban could also impact several other US technology companies that rely on sales and production in China.
In response, The Wall Street Journal reported that China has instructed officials in central government agencies not to use iPhones and other foreign-branded devices from Apple at work or bring them into offices, according to individuals familiar with the matter.
The sources added that Beijing has long prohibited government officials in some agencies from using iPhones at work, but the ban has now been expanded.
