How ban on using iPhone for Chinese officials impacted Apple stocks: Expert insights
How ban on using iPhone for Chinese officials impacted Apple stocks (Getty Images)
The decision of the Chinese government to prohibit central government officials from using iPhones had a noticeable impact on American stock indexes, as Head of Corporate Research at ICU Group Olexander Martynenko wrote in a column for RBC-Ukraine.
"Fears that this is just the beginning led to a decline in Apple's shares, as well as its suppliers Nvidia and Qualcomm, dragging down the technology sector index Nasdaq Composite, and the broader S&P 500. Both indexes lost 1.9% and 1.3%, respectively, last week," Martynenko explained.
China banned government officials from using iPhones
For months, Chinese government officials have followed an unwritten rule to avoid using iPhones. Apple receives about 19% of its revenue from China, so the ban could have a negative impact on the company.
The Wall Street Journal reported that this could be revenge for similar actions by the United States against Chinese technologies and the TikTok social network.
Indeed, the US Congress banned the use of Chinese TikTok on work devices at the end of December 2022. Similar decisions were later made in European states.
