(Bloomberg) — Apple Inc posted its worst share decline in a month after Chinese government agencies banned workers from using iPhones and other foreign-branded devices at work.
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Employees at “some” central government regulators have received instructions to stop bringing these gadgets into the office in chat groups and meetings, the Wall Street Journal said, citing people familiar with the matter. It is unclear how far the orders have been issued, the newspaper added.
Shares slid as much as 3.3% to $183.53 in New York on Wednesday, marking the biggest intraday decline since Aug. 4. Apple has gained 46% this year through Tuesday’s close.
The company is widely popular in China, its biggest global market, despite growing resentment over America’s efforts to capture the Asian nation’s tech industry. Apple iPhones are among the top sellers in the country and are common in both the public and private sectors.
But foreign equipment has long been a disappointment among sensitive agencies in recent years as Beijing ramps up its campaign to reduce its reliance on technology, particularly from China’s geopolitical rival, the US.
Read more: China govt orders government firms to dispose of foreign PCs
In the year By 2022, Beijing has ordered central government agencies and state-backed corporations to replace foreign-made personal computers with domestic alternatives within two years, one of the most aggressive efforts to weed out overseas technology in their most sensitive parts.
Still, China was one of Apple’s strongest performers last quarter, helping to offset a generally slower period. The Cupertino, California-based company is preparing to unveil its latest iPhones next week, gearing up for the holiday quarter, the biggest sales period of the year.
–With help from Geran Wittenstein.
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