Apple reportedly loses $200,000,000,000 in stocks within two days, ahead of the iPhone 15's launch

In just two days, Apple has reportedly experienced a massive depreciation of $200 billion in market value due to the Chinese government allegedly forbidding government employees from using iPhones on the job. With close to 20% of the tech giant's income coming from China, this news is alarming as it's the third largest consumer of their products.

Potential outcomes for Apple losing a substantial amount of stock will be discussed in this article, shedding light on the situation.

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Apple has lost $200 billion as China bans its government from using iPhones

It's potentially big news for the next iPhone 15 release, as the loss of $200 billion in stocks looms. The ripple effect could hurt annual sales by nearly 10 million units. Investors were spooked by China's potential ban and scrambled to sell off various assets, such as semiconductors, mega-cap technologies, and U.S.-traded Chinese equities.

According to Paul Haenle, the previous chief of China under the National Security Council, the country is set to reduce dependence on foreign technology and heighten cybersecurity. Furthermore, officials at central government agencies received a directive order within the past few weeks, instructing them to avoid using any iPhones or other non-domestic devices while working or in the office.

This caused Apple to suffer its biggest daily drop in over a month. Their products have a significant market presence in China, with one-fifth of the company’s revenue coming from Chinese sales.

The attention-grabbing ban just imposed by Beijing for blocking the transfer of sensitive information beyond its borders suggests that its motivation was national security and potential economic impacts.

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The iPhone ban in China also has an impact on other businesses

Numerous American technology companies relying on manufacturing and sales in China are on edge, fearing the consequences of Beijing's potential ban. It's not just Apple that's affected.

With bond investors selling in response to predictions that the Federal Reserve will act more aggressively against inflation, technology firms are struggling amid the rise in US Treasury rates.

China relies on contract manufacturers and suppliers, including iPhone makers, to create its products, which brings millions of job opportunities and valuable contributions to the economy. As Apple plays a significant role in the smartphone industry in China, banning its products would deal a significant blow to the nation's income and success.