Apple’s stock price crashes after China bans iPhones

Apple is gearing up to reveal its highly anticipated iPhone 15 series, generating global excitement among tech enthusiasts. However, as the company prepares for this significant launch, it confronts substantial challenges that could directly affect its stock performance.

A primary challenge stems from China’s recent prohibition of foreign-brand phones, including iPhones, within public institutions.

This decisive action by the Chinese government arises from concerns about foreign technology potentially leaking sensitive data from within the country. Consequently, government officials and institutions are now forbidden from using smartphones of US origin, such as the iPhone.

Furthermore, recent reports indicate that China Mobile, one of China’s major wireless communication operators, will not be including the iPhone 15 in its offerings to customers, exacerbating Apple’s predicament in this vital market.

In light of these developments, Apple’s shares have experienced a sharp decline, plummeting by more than 5 per cent in a single day, resulting in a staggering $191 billion loss in market capitalization over just two days.

Nonetheless, Apple’s challenges extend beyond China’s borders. In Europe, concerns about excessive market dominance and potential monopolization have led the European Union to contemplate imposing more stringent regulations on data usage by tech giants like Apple.

This regulatory scrutiny is part of a broader global effort to curb the influence of major tech companies.

Despite these obstacles, Wall Street analysts maintain cautious optimism regarding Apple’s long-term outlook. They believe that events like the iPhone 15 launch could have a favourable impact on the company’s stock prices, potentially offsetting the recent setbacks.

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