After China restricted the use of foreign technology, including iPhones, among government personnel, Apple’s stock dropped by 3.6 percent. This could result in the tech giant loosing $212 billion worth in market cap.
The country has introduced some strict restriction on the use of iPhones as a result, Apple’s market value has tumbled significantly. It is estimated that the latest restrictions from China will devalue Apple by a whpping $212 billion.
China is one of Apple’s largest markets as it is the source of the company’s one-fifth of the total income. Thats why the cupertino based tech giant has no other option but to comply with the restriction.
However, this restrictions only is in place for the government officials and other people can use iPhones freely in their wrokplaces. According to numerous sources, the Chinese government has prohibited the use of iPhones in order to lessen its dependency on technology developed in the United States.
There have been rising tensions between the United States and China, and trade sanctions imposed on companies such as Huawei and ZTE simply added fuel to the fire.
One can say that the recent restrictions imposed on Apple are a form of retaliation from the Chinese government. However, the country is unofficially claiming this move as its measures to strengthen cybersecurity and prevent the leakage of sensitive information. Which is quite funny, because Apple prides its iPhones for being more privacy focus then any other smartphones in the market.
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