China's iPhone crackdown comes at a bad time for Apple
Just as Apple was looking to the iPhone 15 for a revenue boost, China has issued restrictions that could dent sales in a key market.
September is a crucial month for Apple. After an uncharacteristic three-quarter run of declining sales, the company will next week launch new iPhone devices it hopes will revitalise revenue.
So it's bad timing for Apple that China has forbidden government officials from using iPhones at work, as the Wall Street Journal reported. More troublingly, that ban may soon extend to staff at some state-owned enterprises, according to Bloomberg.
Many bigger state-owned firms employ hundreds of thousands of people. Some, like the State Grid Corporation, employ over a million. Just under US$200 billion was wiped from Apple's market cap following the news, with the stock down 6.4%.
China's ban applies to all foreign-made phones, but that effectively equates to a restriction on iPhones. Samsung, the second biggest foreign phone seller in China, has a market share of 1% compared to Apple's 16.8%.
