Apple Shares Fall After China Govt iPhone Ban Reports

There has been no official statement from the Chinese government in response to the reports

Apple Shares Fall After China Govt iPhone Ban Reports

Following news that iPhone use has been prohibited for Chinese government employees, Apple stock has dropped for a second straight day.

In the last two days, the company's stock market value has decreased by more than 6%, or almost $200 billion (£160 billion).

The third-largest market for the IT giant is China, which contributed 18% of its overall sales in 2016. Foxconn, Apple's top supplier, also produces the majority of its products there.

According to a Wednesday Wall Street Journal (WSJ) article, Beijing has instructed employees of core government agencies not to use or carry iPhones to work.

The next day, Bloomberg News reported that employees at state-owned businesses and organizations with support from the government may also be subject to the prohibition.

According to sources who spoke with the WSJ, officials recently received orders from their superiors not to use iPhones. Other gadgets with foreign brands also have restrictions.

The article reports that although some agencies previously prohibited iPhones, the restriction appears to have been expanded.

How extensively the directives were circulated among Chinese officials has not been made clear.

The reports were released before the anticipated September 12 release of the iPhone 15.

On Chinese social media, several users who identified themselves as employees of state-owned businesses said they had received orders to stop using Apple products by the end of September. One jokingly asked, "What should I use for work?" while joking that they were poor and lacked the funds to purchase a new phone.

China is one of Apple's biggest markets, and iPhones are produced in the country, though recently Apple has increased production in India.

There has been no official statement from the Chinese government in response to the reports. Apple has the world's highest stock market valuation, at nearly $2.8 trillion. As well as Apple's shares falling, shares in some of its suppliers were also hit.