The Government of China has announced a ban on the use of the iPhone by officials from at least three ministries, and they propose that the device be banned from any government activity. As reported by The Wall Street Journal this week, Xi Jinping's executive vetoed the use of this device by government officials, while Bloomberg added that these prohibitions had been extended to state-backed companies.
This measure has had a strong impact on those from Cupertino, whose shares have fallen approximately 7% in the last two sessions, which is equivalent to almost 200,000 million dollars (180,000 million euros) of loss in market value.
Although Apple does not reveal the sales data of its flagship device by country, TechInsights analysts estimate that, in the last quarter, more iPhones were sold in China than in the United States.
This measure could be a response to previous restrictions imposed by the United States on TikTok or Huawei; but it also occurs at a key moment. The Cantonese company founded by Ren Zhengfei is about to launch a new high-end Smartphone, and next Tuesday the company led by Tim Cook will present the new iPhone 15 and a new version of the Apple Watch.
The Chinese market is of great importance for Apple. In fact, sales in the republic headed by Jinping accounted for a fifth of total revenue in 2022. In their latest financial report, from Cupertino they reported an 8% increase in revenue generated in China derived from the sale of iPhones, reaching 15,700 million dollars In addition, it should be remembered that it is in that country where most of the devices of the company with the bitten apple are produced.
It is not the first time that China restricts the use of an American technological product. In 2021 Tesla was in the eye of the storm, as they feared leaks from members of its armed forces. A fear that the Yankee executive has used to restrict Chinese applications. Despite Beijing's decisions, sales of Elon Musk's automobile company continued at a good pace.
Despite the tensions, demand for the iPhone in China among the civilian population has continued to increase, which could help mitigate temporary losses in the government market, and replicate the situation already experienced by the company that designs, manufactures and sells cars electrical.
