Apple recently unveiled its latest iPhone 15 series, set to hit stores on September 22. However, before this exciting launch, Apple faced a significant setback when a staggering $20 billion vanished from its stock market value.
The trouble began when China made an announcement that sent shockwaves through the tech world. They declared a ban on foreign smartphone brands, and Apple found itself caught in the crossfire. This decision came as a response to similar bans imposed on Chinese smartphone brands in the United States and Europe.
This sudden turn of events dealt a severe blow to Apple’s stock market standing. China holds a vital position in Apple’s global revenue stream, contributing a substantial 18% of the company’s total earnings last year. Consequently, Apple’s stocks took a nosedive following this ban.
China ranks as the third-largest market for Apple, making the ban on iPhone sales there a painful financial hit. Surprisingly, Apple managed to sell more smartphones in China over the past four months than in its home country, the United States.
One theory behind China’s decision to ban Apple smartphones is the fierce competition posed by Huawei, a popular Chinese tech giant. Huawei’s introduction of a new smartphone might have prompted this action against Apple. Notably, Huawei had previously faced blacklisting in 2019, raising tensions in the global tech market.
Apple’s journey to launch its iPhone 15 series has been marred by a sudden stock market loss due to China’s ban on foreign smartphone brands. This ban could have far-reaching implications for Apple’s global standing and profits, especially given the substantial revenue it derives from the Chinese market. The competition from Chinese tech companies like Huawei further complicates the situation, making it crucial for Apple to navigate these challenges effectively.