Get All Access for $5/mo

Apple Incurs $200 Billion Loss in 2 Days as China's iPhone Bans Shakes Stock Market Confidence China is Apple's largest foreign market, accounting for a substantial portion of its revenue.

By Madeline Garfinkle

Key Takeaways

  • Apple's $200 billion loss comes after news that China issued a ban of Apple iPhones.
  • Analysts noted the "interesting" timing of China's iPhone ban, which coincides with the launch of a new flagship smartphone by Chinese manufacturer Huawei.

Opinions expressed by Entrepreneur contributors are their own.

In just two days, Apple incurred losses of approximately $200 billion, currently making it the worst-performing stock in the Dow Jones Industrial Average, CNN reported. The losses come after the tech giant's shares plummeted by 2.9% on Thursday following reports that China intends to expand its ban on iPhones to include government-backed entities and corporations.

On Wednesday, The Wall Street Journal reported that China issued a directive order in recent weeks, telling officials at central government agencies to refrain from using Apple iPhones and other foreign-branded devices for work or bringing them into the office, part of a broader effort to reduce reliance on foreign technology and enhance cybersecurity.

One day later, news broke that the government bans would be extended to government-backed agencies and state companies such as oil firm PetroChina, which employs millions of workers, Bloomberg reported.

Related: People Poured $10 Billion Into Apple's New Savings Accounts — But Goldman Sachs Wants to Pull the Plug

The stock drop signals that investors may be concerned about Apple's ability to operate effectively in China, the world's second-largest economy, CNN added. The bans are particularly worrisome for Apple since China is its largest foreign market, and accounted for about one-fifth of its total revenue last year, according to an SEC filing.

Analysts at Bank of America noted that the possibility of an iPhone ban coincides with the launch of a new top-tier flagship smartphone by the Chinese manufacturer Huawei, describing the timing as "interesting," per CNN.

The new smartphone is also under investigation by the U.S. government to discern whether it found a way around American rules on exporting to create the new chip, with national security adviser Jake Sullivan saying in a press briefing on Tuesday that the U.S. needs "more information about precisely its character and composition."

Related: Why Is the U.S. Threatening to Ban TikTok? The Government Wants Chinese Owners to Sell Stakes

Madeline Garfinkle

News Writer

Madeline Garfinkle is a News Writer at Entrepreneur.com. She is a graduate from Syracuse University, and received an MFA from Columbia University. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Leadership

Visionaries or Vague Promises? Why Companies Fail Without Leaders Who See Beyond the Bottom Line

Visionary leaders turn bold ideas into lasting impact by building resilience, clarity and future-ready teams.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Science & Technology

5 Automation Strategies Every Small Business Should Follow

It's time we make IT automation work for us: streamline processes, boost efficiency and drive growth with the right tools and strategy.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Green Entrepreneur®

How Global Business Leaders Can Build a Sustainable Supply Chain

Businesses can build sustainable supply chains by leveraging technology to reduce environmental impact, optimize resources and track emissions while balancing operational efficiency and sustainability goals.