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Apple’s stock experienced a 3% drop on Thursday, following a 4% decline the previous day, as reports emerged suggesting that Chinese government employees might face a ban on using iPhones. Although the Chinese government has not publicly announced these restrictions, concerns are rising that Apple’s products could be entangled in escalating international tensions between the U.S. and China. Greater China, including Hong Kong and Taiwan, constitutes Apple’s third-largest market, contributing 18% of its total revenue of $394 billion. This region also serves as the primary assembly location for most Apple products. China’s directive to government officials to refrain from using iPhones for work could potentially expand to other state-run entities, further impacting sales. If these bans signal a broader move by China to promote domestic technology usage, it could negatively affect iPhone sales among consumers. Some investors are reacting to this uncertainty by divesting their Apple holdings, while the recent introduction of new Huawei phones and the competitive landscape add to Apple’s challenges in the Chinese market.

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