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Apple’s Market Value to Decline $200 Billion as China Expands iPhone Ban: Analysts

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Apple Faces Market Value Decline as China Expands iPhone Ban

Reports indicate that Apple is set to lose $200 billion of its market value following China’s decision to extend the ban on iPhones to government-backed agencies and state-owned companies.

Share Prices Plummet

The company’s shares have dropped by 5.1 percent, resulting in a two-day decline of 6.8 percent.

Concerns Over US Treasury Yields

Apple’s troubles are further compounded by the increase in US Treasury yields, with fears mounting that the Federal Reserve will need to intensify efforts to combat inflation.

Timing of the Ban

Analyst Womsi Mohan highlights the interesting timing of the ban, coinciding with the recent launch of Huawei’s advanced 5G smartphone.

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Furthermore, Huawei’s new device demonstrates Beijing’s progress in circumventing US attempts to stifle its growth, as it utilizes 7nm chips from Semiconductor Manufacturing International Corp.

Potential Impact on US Tech Companies

China’s ban could also have repercussions for various other American tech companies heavily reliant on sales and production in the country.

China’s Restrictions on Apple

According to reports from the US Wall Street Journal, China has instructed central government officials to abstain from using Apple iPhones and other foreign-brand devices both at work and within the office.

The ban, which was previously limited to certain departments, has now been expanded.

Source: Agencies

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