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 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

Growing a Business

Learn a New Language to Help Grow Your Business for $150

Babbel makes studying a new language easy with bite-sized lessons that you can fit in throughout the day.


Location Matters — How to Select the Right Place For Your Business to Succeed

An inferior location may be less expensive in the short term, but will cost more in marketing costs and when it's time to sell. Franchisors offer real estate knowledge and relationships to help their franchisees get the best possible location at the best possible price, giving them the best possible start.


Harvard Business School Professor Says 65% of Startups Fail for One Reason. Here's How to Avoid It.

Team alignment isn't nice to have -- it's critical for running a successful business.

Science & Technology

Porch Pirates Stole 119 Million Packages From Doorsteps Last Year Alone. Here's What You Can Do to Make Sure This Doesn't Happen to Your Customers.

The rapid growth of ecommerce, fueled by the pandemic, has increased opportunities for "porch pirates" who target packages left on doorsteps, impacting both consumer confidence and business finances. This rise in theft underscores the need for effective security measures — read on for some suggestions from my 17 years in the industry.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Thought Leaders

I've Coached Many Successful Entrepreneurs — Here are 7 Lessons I've Learned Along the Way

The path to success varies widely among those who pursue it, yet it's bound by a few common practices. From writing down goals to prioritizing well-being, achieving a richer, more fulfilling life extends far beyond financial wealth.