China Bans iPhones for Government Officials, Apple Shares Drop
Hong Kong/New York – China has banned the use of iPhones for central government officials, according to unnamed sources familiar with the matter, as reported by The Wall Street Journal. The news sent Apple shares tumbling by 3.6% on Wednesday, marking the biggest daily drop in a month.
Before the ban, Apple had experienced a 46% rise in its shares this year. The ban has been communicated to employees through chat groups or meetings, according to the WSJ. CNN reached out to China’s Ministry of Foreign Affairs and Apple for comments but has not received a response.
An anonymous source who frequently deals with Chinese central government agencies told CNN that Chinese officials have been avoiding iPhones for months before the ban, despite the absence of a formal policy. Last June, CNN reported that some Chinese government ministries had banned Teslas over security concerns.
Apple CEO Tim Cook visited China in March, highlighting the country’s significance as a market and manufacturing center for the company. China accounts for around 19% of Apple’s overall revenue. The ban on iPhones for government officials may be seen as retaliation for US restrictions on Chinese tech companies, which could have a chilling effect on Apple and other foreign brands with a presence in China.
China’s Huawei and ZTE have long faced restrictions in the US, with the Biden administration banning approvals of new telecommunications equipment from both companies in November 2022, due to concerns over national security risks. Similarly, TikTok has been banned on devices issued by various US institutions over worries about potential access to user data by the Chinese government through its parent company, Bytedance.
The ban on iPhones for Chinese government officials adds to the ongoing tensions between the US and China in the technology sector. The implications of this move remain uncertain, but it could have significant consequences for Apple and other multinational companies operating in China.
— CNN’s Beijing bureau contributed to this article.