China's Restrictions on iPhones Send Apple Shares Tumbling

China's Restrictions , on iPhones Send , Apple Shares Tumbling.

Al Jazeera reports that shares in Apple plummeted for the second straight session following the announcement of strict Chinese restrictions on iPhones.

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The restrictions, which ban iPhones from government offices and state-backed entities, come amid rising tensions between the United States and China.

Following the release of a 'Wall Street Journal' report on the new Chinese policy, shares in the world's biggest publicly-traded company fell 3.5% on September 6.

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On September 7, shares in Apple fell an additional 2.8% to reach $177.79 by late morning trading.

Al Jazeera reports that China has been pushing locally-made tech products, with technology at the center of major national security issues with the U.S. In 2020, 'The Economic Observer' reported that some Chinese government agencies had already implemented a ban on officials using iPhones, citing Apple's strict privacy rules.

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China generates nearly one fifth of the tech giant's revenue, making it one of Apple's largest markets.

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This could provide an additional challenge for the company, as its revenues from China have already been negatively impacted by a challenging macroeconomic environment in that country, Tom Forte, D.A.

Davidson analyst, via Al Jazeera.

According to Patrick O'Hare, a Briefing.com analyst, China's ban on Apple could have implications that extend to other tech companies.

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The worry for the market is that, if China purposely chooses to make business difficult for a company like Apple, which has a good and important working relationship in China, then it can do so for a lot of other U.S. companies doing business in China, Patrick O'Hare, Briefing.com analyst, via Al Jazeera.

The worry for the market is that, if China purposely chooses to make business difficult for a company like Apple, which has a good and important working relationship in China, then it can do so for a lot of other U.S. companies doing business in China, Patrick O'Hare, Briefing.com analyst, via Al Jazeera