Apple shares plunge more than 3 percent in New York Stock Exchange in 6 days
China bans officials from using foreign-made cell phones
The US has banned the use of TikTok and Huawei, which China developed, and in retaliation, China has banned the use of Apple iPhones by government officials.
As a result, Apple’s stock price plummeted by more than 3% on the New York Stock Exchange on the 6th (local time).
The Wall Street Journal reported yesterday that the Chinese government has banned the use of foreign mobile phones, including Apple iPhones, by government officials, citing security reasons.
This is interpreted as a measure to reduce dependence on foreign technology and enhance cybersecurity.
In particular, this is seen as a retaliatory measure against the US ban on Huawei and TikTok usage.
Previously, the US banned using TikTok and Huawei, citing national security threats. In some states, TikTok usage was entirely prohibited.
Huawei has been banned since the Trump administration. The US government had previously banned Huawei usage, claiming that the company was stealing secrets by embedding spyware while building telecommunications networks.
In particular, there was a comprehensive attack on Huawei, including the arrest of Meng Wanzhou, the daughter of Huawei’s founder Ren Zhengfei, in Canada on charges related to Iran sanctions.
China’s ban on using foreign mobile phones, including Apple, appears to be a retaliatory measure.
As a result, Apple is expected to face a major shock. This is because Apple dominates the high-end smartphone market in China. China is a large market that accounts for 19% of Apple’s total revenue.
As a result, Apple’s stock price dropped by more than 3% on the day. On the New York Stock Exchange, Apple recorded a 3.58% drop to $182.91 compared to the previous trading day. As a result, its market capitalization fell below $3 trillion. Apple’s market capitalization was calculated at $2.86 trillion.
China’s recent measure also appears to be an attempt to encourage the use of domestic Huawei phones, as the company recently unveiled its latest smartphone.
Huawei unveiled the ‘Mate 60 Pro’ on the 29th of last month, three years after the US sanctions.
On this day, Huawei surprised the US by announcing the sale of the Mate 60 Pro, which features a 7-nanometer (㎚=1 billionth of a meter) chip developed by China.
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