Bloomberg and St. Aubin: Adversity for Apple Inc. if China Expands iPhone Bans
Access to this article may require a subscription.
In a span of two days, Apple Inc. has seen roughly $200 billion (about the size of the whole of McDonald’s Corp.) of its market value wiped out. And it looks like the blame rests with China, which announced plans to expand a ban on the use of iPhones to government-backed agencies and state companies. Several agencies have begun instructing staff not to bring their iPhones to work, the Wall Street Journal reported, which Bloomberg then confirmed. What’s more, Beijing plans to extend that restriction far more broadly to other state-owned enterprises and other government-controlled organizations.
If authorities follow through, such a ban risks eroding Apple’s position in a market that yields about a fifth of its revenue, and from where it makes the majority of the world’s iPhones through sprawling factories that employ hundreds of thousands of people. Apple, after all, considers China its biggest foreign market and global production base.
The thoughts and opinions expressed in the article are solely those of the person speaking as of 9/8/2023, and not necessarily those of Sierra and are provided for informational purposes only. Any opinion or estimate contained in this article is made on a general basis and is not to be relied upon by the reader as advice. The reader must make his/her own assessment of the relevance, accuracy, and adequacy of the information contained in this article, and make such independent investigations as he/she may consider necessary or appropriate for the purpose of such assessment.