(Bloomberg) — China fell in premarket trading Thursday, wiping out $194 billion in market value in two days as it plans to expand its ban on iPhones from state-backed agencies and state-owned companies. .
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Shares of the Cupertino, Calif.-based company fell as much as 3.2% in premarket trading after falling 3.6% on Wednesday. It will be the second time in a month that the shares have seen such a steep decline.
China, the technology giant’s largest foreign market and global production base, has been trying for years to root out foreign technologies used in sensitive areas. The latest development coincides with Beijing’s efforts to reduce its dependence on American software and circuits.
If Beijing goes ahead, the unprecedented ban could also affect many other US tech companies that rely on sales and production in China. Apple’s suppliers had lower turnover across continents as several reports confirmed China’s latest move.
However, bullish analysts like Wedbush Securities’ Daniel Ives think the “iPhone ban is overblown” because it will affect fewer than 500,000 iPhones of the estimated 45 million expected to be sold in the country over the next 12 months.
“Despite the high volume, Apple saw significant share gains in the Chinese smartphone market,” Ives, who is overweight on the stock, wrote in a note.
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