The fear of electronics spying between the US and China continues as China moves to ban Apple’s products for government officials at work. This could potentially hit Apple’s third largest revenue source worth $74 billion of mostly iPhone sales and accounting to 20% of Apple’s total revenue in 2022.
According to Forbes, the plant in Zhengzhou makes about 85% of iPhone and it could take some years to relocate. Possibly billions of dollars and hundreds of thousands of Chinese workers are about to be hit as well if Apple committed to.
The ban might be a strategic move for sustaining Chinese smart device manufacturers such as Huawei that have been getting a lot of chip bans from both the US and EU.
The ban news knocked Apple (NASDAQ : APPL) total value down by $200 billion in yesterday trading session (7 Sep), dropping the APPL price from $189 to $176, compared to the all-time high at $195 per share in July. The drop in APPL yesterday also contributed to a decline NASDAQ by 0.89%.
