Apple’s Market Capitalization Drops by Nearly $200 Billion Amid Reports of iPhone Curbs in China

Apple Inc. (AAPL) recently saw a significant decline in its market capitalization, shedding nearly $200 billion in value over the past few days, driven by reports of iPhone usage restrictions for workers in China. The tech giant’s shares experienced a sharp decline over the last five days, slipping by approximately 5.5%, following a gradual decline of nearly 1% over the past month.

Despite this downward trend, Apple shares showed signs of recovery on Friday, targeting their most significant percentage increase since August 30, 2023, when shares rose by 1.92%, according to Dow Jones Market Data Group. By Friday afternoon, Apple had managed to regain approximately $40 billion in market value.

Apple remained silent in response to inquiries from FOX Business regarding the situation. The reports of iPhone curbs in China have sparked concerns among investors and industry observers, as China represents a crucial market for the tech giant.

The initial report on the matter came from The Wall Street Journal, which revealed that staff at China’s central government agencies had received directives in recent weeks through workplace chat groups or during meetings. These directives aimed to curb Beijing’s reliance on foreign technology and bolster cybersecurity as part of a broader campaign to control the flow of sensitive information outside China.

Sources indicated that China had already limited iPhone usage for government employees for several years, but the new directive expands the ban and underscores Beijing’s determination to enforce these regulations. Employees at central government regulators also reportedly received similar messages about restricting iPhone usage during work hours.

Chinese President Xi Jinping’s emphasis on national security amid escalating tensions with Washington, D.C., has led to increased state control over data and digital activities in recent years, as highlighted by The Wall Street Journal. In line with this trend, government institutions and state-owned companies in China, as reported by the Financial Times, have received instructions to discontinue their use of Apple technology.

The loss of market capitalization and reports of iPhone restrictions in China present new challenges for Apple as it navigates a complex geopolitical landscape and seeks to maintain its foothold in one of the world’s largest consumer markets. The extent of the impact on the company’s long-term prospects remains uncertain, but it underscores the evolving dynamics of international technology competition in an increasingly interconnected world.