by Chris Black
China hasn’t actually totally banned the iPhone – they’ve simply banned it among government employees because it is a security risk.
Apple used to take security very seriously, and they simply don’t anymore.
People with iPhones are effectively using US government spying devices to do Chinese government work.
Maybe the US government can’t see everything on an iPhone. No one really knows.
What’s more: the fact that China is doing this might mean that they’ve discovered a flaw in the iPhone.
Or, it could simply mean that they want to promote their own phones and hurt American businesses.
It was really ridiculous to declare an economic war against China. I can tell you that.
They’ve got a whole lot of leverage.
If China does start pushing the population to stop using the phones, the current valuation of the company will be even more ridiculous than it already is, and you will start to see people panic.
Logically, that would be good for other tech stocks and for crypto. But this stuff is not always logical.
It could also just cause the entire tech market to drop.
Apple’s market value has fallen by nearly $200 billion after reports that China has banned government workers from using iPhones or any other foreign devices for work purposes, or bringing them into the office.
Shares in Apple fell almost 3% on Thursday and are down 6.4% over the last two days. Several major suppliers of the US tech giant have also seen their stocks plummet. Taiwan’s TSMC, the world’s biggest contract chipmaker and a major Apple supplier, has lost over 2%, while shares in ASE Technology Holding, one of the world’s largest semiconductor testing and packaging companies, slid 2%, and camera lens-maker Largan Precision saw a decline of more than 3%.
China, the largest foreign market for Apple products, could further expand its curbs on officials’ use of iPhones, according to Allen Huang, executive director of Mega International Investment Services Corp in Taipei, as cited by Reuters.