Apple shares tumble nearly $200 billion in 2 days as China cracks down on iPhone use
California-based company Cupertino's shares dropped 5.1 percent, bringing its two-day slump to 6.8 percent.
PremiumAmid the reports of China planning to expand a ban on the use of iPhones to government-backed agencies and state companies, the shares of Apple Inc tumbled on 7 September on track to wipe out $200 billion of market value in just two days, reported Bloomberg.
As per the report, California-based company Cupertino's shares dropped 5.1 percent, bringing its two-day slump to 6.8 percent. In major US equity indexes, Apple is the biggest component and adding to a broader selloff sparked in part by a litany of woes in China.
It is to be known that the iPhone maker counts China as its biggest foreign market and global production base.
ALSO READ: China expands ban on use of iPhones, foreign-branded devices for government officials: Reports
As the US economy remains resilient, more troubles are waiting for Apple with the bonds sell off on worries the Federal Reserve, which will have to step up its fight against inflation.
The latest development is having a widespread effect on the markets, with investors selling everything from chips, and mega-cap technology to US-listed Chinese stocks.
“The Nasdaq is sinking as one bad Apple spoils a bunch of mega-cap tech stocks," Bloomberg quoted Edward Moya, senior market analyst at OANDA, as saying, who added, “Apple’s growth story is heavily reliant on China and if the Beijing crackdown intensifies that could pose a big problem to the bunch of other mega-cap tech companies that rely on China."
Chinese curb effect:
If the Chinese administration goes ahead with a ban on the use of iPhones and other foreign-branded devices by government officials, this may have a cascading effect on several other US technology companies that rely on sales and production in China.
Across continents, Apple suppliers were trading lower on Thursday as multiple reports confirmed China’s latest changes.
Meanwhile, Wedbush Securities’ Daniel Ives opines the effect of an “iPhone ban is way overblown" citing it may affect less than 500,000 iPhones of the roughly 45 million to be sold in the country over the next 12 months.
Despite the loud noise Apple has seen massive share gains in China smartphone market," Ives said.
With agency inputs.
"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!
