Apple Shares Tumble Amid China’s Increasing iPhone Restrictions

Apple shares fell for three straight days last week after reports of China’s proposed iPhone ban for government agencies and jobs.

It was the latest move amid growing tech tensions between China and the United States. Shares of the world’s biggest publicly traded company were down as much as 4% on the news that China planned to expand the ban to government-backed agencies and state companies, broadening the effect of the policy in a centrally planned economy.

China has increasingly emphasised using locally made tech products, as technology has become a major national security issue for Beijing and Washington.

Government agencies and state-owned enterprises (SOE) in both countries have been the first and most important areas to push forward such a campaign.

China is one of Apple’s biggest markets and generates nearly a fifth of its revenue. Apple, together with its suppliers, employs thousands of workers in China and CEO Tim Cook stressed its long ties with the country during a March visit to Beijing.

The extension of a ban imposed more than two years ago signals growing challenges for the US company, which relies heavily on China for revenue growth and manufacturing.

Analysts believe the restrictions have the potential to slow Apple’s sales growth in China. Others warn of a wider challenge. If China chooses to make business difficult for a company like Apple, with whom it has a good relationship, then it can do so for a lot of other US companies doing business in that country.