Apple shares slide after China government iPhone ban reports

Apple’s shares fell nearly three percent on Wednesday, which was its biggest decline in a month. The trend of decline in the company’s shares continued on Thursday also. The company’s shares closed with a decline of 2.92 percent. Apple’s stock is currently the worst performing stock in the Dow Jones Industrial Average. Last year, China’s share in the company’s total revenue was about 20 percent. Apple does not disclose its sales in which country, but experts say that in the last quarter it sold more iPhones in China than in America. Not only this, most of Apple’s iPhones are made in Chinese factories only.

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Why did China do this

Brandon Nispel, analyst at KeyBanc Capital, says that Apple plays an important role in China’s economy. Because of this, the company in China has not had to face government restrictions in China. But it seems that now the attitude of the Chinese government is changing. On Wednesday, news came that China has banned the use of iPhone for central government officials and managers. After this, news came on Thursday that this ban has been imposed on government companies also. These also include the government energy company PetroChina, in which lakhs of people work.

Bank of America analysts say that the iPhone has been banned in China at a time when the Chinese company Huawei has launched a new expensive smartphone. The US government said on Tuesday that it is investigating this phone. After this news, shares of tech and semiconductor companies fell on Thursday. Despite this decline, Apple remains the most valuable company in the world. Its market cap remains at $2.776 trillion.