Apple shares suffered their worst drop in a month after reports that Chinese government agencies banned employees from using iPhones and other foreign-branded devices at work.
The Wall Street Journal, citing people familiar with the matter, said “some” employees of central government regulators had received instructions through chat groups and meetings to stop bringing such devices into their offices. The paper added that it was unclear how widespread the orders would be.
The stock fell 3.3% to $183.53 in New York on Wednesday, its biggest intraday drop since Aug. 4. Apple shares have risen 46 percent this year through Tuesday’s close, part of a broader rally in technology stocks.
The company is popular in China, its largest international market, despite growing dissatisfaction with U.S. efforts to curb the Asian nation’s tech industry. Apple Inc.’s iPhone is one of the country’s best-selling products and is common in both the government and the private sector.
Sensitive agencies, however, have long discouraged the use of foreign equipment, especially as Beijing has stepped up efforts in recent years to reduce its reliance on U.S. technology, China’s geopolitical rival.
2022, Beijing ordered Central government agencies and state-backed businesses will replace foreign-branded personal computers with domestic alternatives within two years, in one of the most aggressive efforts to eliminate key overseas technology from within their most sensitive institutions.
Nevertheless, China is still one of the highlights Apple’s results last quarter helped offset a generally sluggish period.The Cupertino, California-based company is preparing to Introducing the latest iPhone Next week, the groundwork is being laid for the holiday season, arguably the biggest selling time of the year.
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