A few days before, Apple launched the iPhone 15 and a bunch of other products at their latest Apple Event.
The event was as usual, stating that the newer iPhone is faster, lighter, and stronger than the previous iPhone. This time, they paired the phone with a USB-C port (since they were compelled by the European Union) and their “action” key.
However, prior to the event, Apple Inc. lost around $200 Billion dollars worth of market cap.
China Bans iPhone
The US-China relationship has taken a hit over the years due to a variety of reasons.
Earlier, Tim Cook visited China to demonstrate Apple’s friendship with the country during a period of escalating US-China relations.
He praised China by stating that their innovation is developing rapidly and will accelerate in the future.
However, Beijing has ordered officials not to use iPhones and is considering widening the ban to include both the government and state-owned firms.
The reason is simple. China doesn’t want to rely on overseas technology amidst espionage tensions and the tech wars. China is competing on everything with the US.
However, this news was not taken well by the investors where the shares went down more than 6%, wiping at least 200 Billion dollars off the stock’s worth.
Apple is Dependent on China
Apple has been one of the most successful technology companies out there. Their innovations have been praised by hardcore tech enthusiasts and industry leaders over the years.
The company has diversified its manufacturing to other countries as well due to China’s strict zero-COVID policy.
With that said, Apple still needs China. In fact, 50% of the iPhones are made in the city of Zhengzhou, also known as iPhone City, where 200,000 workers were employed (as of November 2022).
More importantly, Apple’s biggest market outside the US is China, which accounts for 20% of the company’s total revenue.
Now, we will have to see if this is just a “bad” phase for Apple as a company. Surely, the tech giant has seen lots of ups and downs ever since it was launched.
Whether it will overcome this hurdle, we will have to wait and see.