Apple shares bounce back after $200B loss due to concerns over China iPhone ban.

Apple ⁢Shares Rebound After ⁤China’s iPhone Ban

Apple shares took a hit this week, losing about $200 billion in valuation due to reports that China ⁤would ban government employees⁣ from​ using iPhones for work. However, the tech giant managed‌ to rebound at the end of the trading week, climbing about 1 percent to‍ around ⁢$180 per share.

Despite the recovery, Apple is ⁢still poised for a weekly loss of ⁣nearly 5 percent. The‍ decline in​ share price also affected Apple’s suppliers, with Largan Precision and Taiwan Semiconductor Manufacturing (TSMC) experiencing drops in ‌their ​stock prices.

China’s Ban ⁤and Its Financial Consequences

Investors panicked after China announced the ban‌ on government officials using Apple iPhones for work. This move is part of China’s ‍efforts to reduce dependence on foreign technology and enhance cybersecurity amid​ growing‌ geopolitical tensions.

While the U.S. government has taken similar actions against Chinese tech firms ‍in the past, the ban on Apple could have more significant financial consequences.​ China is a ‌critical consumer market and manufacturing hub for Apple, generating approximately one-fifth of its revenue. The ban could potentially wipe out around $280 million in profit for the tech giant.

Analysts predict that consumers‌ may adopt a hybrid approach, using both Apple and Huawei phones. However, some investors, like portfolio manager Dan Niles, have chosen to sell their stake in ⁢Apple​ and short the company due to the potential ban and increased competition⁤ from Huawei.

The ⁣White‌ House’s Response

While the ban has raised concerns, the White House has remained relatively quiet on the issue. National Security Adviser‍ Jake Sullivan stated that this ‌is ⁣primarily an issue⁣ for the Chinese regime and not ‍the U.S. government. Treasury Secretary Janet Yellen also refrained from commenting on ‍the ban.

As the situation unfolds, it remains ⁤to be seen how ‌China’s ban on⁤ Apple will⁣ impact the tech industry and ⁣the ongoing tensions between the U.S. and China.