Shares of Apple ( AAPL ) fell 4 percent on Wednesday after reports that China has banned government officials from using the company’s iPhone cellphones for work; This is part of Beijing’s efforts to reduce its reliance on foreign technology and strengthen cyber security.
Key receivers
- China has banned government officials from using the company’s iPhones for work. Wall Street Journal He reported on Wednesday.
- It’s part of an effort to reduce the country’s reliance on foreign technology and bolster its cybersecurity amid heightened geopolitical tensions with the US.
- Apple gets about a fifth of its revenue from China, which serves as a huge consumer market and manufacturing hub for its technology.
News of the ban was first reported by Wall Street Journal, which one He spoke to several people familiar with the matter. The ban is part of Chinese President Xi Jinping’s efforts to reduce the country’s reliance on foreign technology and boost cyber security amid heightened geopolitical tensions with the US.
Apple and its devices are widely popular among the private sector and government officials in China. China serves as a huge consumer market and manufacturing hub for technology.
Apple employs millions of people — most of them made in China — and makes other major products through a network of contract manufacturers and suppliers. The company gets less than a fifth of its revenue from China, and sales totaled $15.76 billion in the quarter ending July 1, up 8 percent from a year ago.
The ban mirrors similar moves by the US government against Chinese tech companies and apps, including Huawei and TikTok.
Since last year, the federal government, along with 26 states, have taken steps to limit or ban the use of TikTok in government offices. Government officials have argued that the Chinese government could use the app to spy on US citizens and collect sensitive personal information. The Biden administration is considering the possibility of cutting off Huawei from US suppliers, and a decision on the matter is still pending.
Apple is no stranger to government scrutiny, both at home and abroad. The company, along with tech giants such as Amazon ( AMZN ), Google ( GOOGL ), Meta Platforms ( META ), or Microsoft ( MSFT ), has been targeted by regulators in the US and Europe for uncompetitive business practices and monopoly status.
The European Union has today designated Apple and five other tech companies as ‘gatekeepers’ who must comply with the EU’s Digital Markets Act (DMA).
Apple shares fell more than 4% on Wednesday, but are up 40% so far this year.
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