China has reportedly prohibited central government officials from using iPhones. According to The Wall Street Journal, managers have been communicating this ban through chat groups and meetings.
Following this news, Apple’s stock experienced a 3.6% decline on September 6, closing at $182.91 in New York, marking its most substantial daily drop in a month. Prior to this drop, Apple had seen a 46% increase in its stock price this year.
The WSJ report mentions that Chinese officials had been avoiding iPhones even before the pandemic, despite the absence of a formal policy. Instead, central government officials now prefer smartphones from major domestic companies like Huawei.
This isn’t the first time the Chinese government has steered away from using US products. In 2022, certain Chinese government ministries banned Teslas from their premises due to security concerns.
China plays a crucial role in Apple’s market and manufacturing, contributing to approximately 19% of its total revenue.
This iPhone ban appears to be in response to similar actions taken by the United States against Chinese tech companies. Both Huawei and ZTE have faced long-standing restrictions in the US. Additionally, in November 2022, the Biden administration halted approvals of new telecommunications equipment from these companies, citing concerns about US national security.
Furthermore, TikTok has been banned from devices issued by several US institutions, including the House of Representatives, the City of New York, Montana, New Jersey, Ohio, Texas, and Georgia.