China is stepping up its efforts to limit the use of foreign technology in the country, and Apple is among the first companies to feel the effects. The country issued a ban on iPhones in government agencies and state companies, causing Apple shares to slip 3.9% in pre-market trading on Thursday.
While China has been limiting the use of iPhones when it comes to government officials for some time now, the latest ban reportedly had a much larger scope. According to Bloomberg, the workers at central government agencies, companies owned by the state, and organizations controlled by the government have received instructions not to bring their iPhones to work in recent days.
China has been working hard to stop foreign technology from having a significant share of its market due to concerns over the leakage of sensitive information.
It is unclear whether the ban will just be workplace-related or have an influence on personal smartphone use. The latter could significantly impact Apple’s business in China, considering that the country accounts for almost 20% of its revenue.
Apple’s stock closed at $182.91 per share on Wednesday but dropped to $175.80 in pre-market trading. The company’s shares have been 46.25% up year-to-date before the most recent plunge.
