China has reportedly prohibited central government officials from using iPhones, according to unnamed sources cited by The Wall Street Journal. Apple’s stock experienced a significant 3.6% decline on Wednesday, closing at $182.91 in New York, marking its most substantial daily drop in a month. Prior to this development, Apple’s stock had surged by 46% over the course of the year.
Reports from The Wall Street Journal indicate that managers have been conveying this ban to their employees through chat groups and meetings. CNN attempted to contact China’s Ministry of Foreign Affairs and Apple (AAPL) for comments but has not received a response as of yet.
A source familiar with Chinese central government agencies, who requested anonymity due to the sensitive nature of the matter, informed CNN that Chinese officials had been unofficially avoiding iPhones even before the pandemic, despite the absence of a formal policy. This source also noted that central government officials now tend to favor smartphones produced by prominent domestic companies, particularly Huawei.
This move follows a pattern where certain Chinese government ministries previously banned Teslas from their premises due to security concerns, as reported by CNN in June 2022. Apple’s CEO, Tim Cook, made a high-profile visit to China in March, underscoring the country’s significance as both a major market and a manufacturing hub, contributing approximately 19% of Apple’s total revenue.
The ban on iPhones for government officials in China may be seen as a response to similar actions taken by the United States against Chinese tech companies, potentially impacting not only Apple but also other prominent foreign brands deeply rooted in China.
It is noteworthy that China’s Huawei and ZTE have long faced restrictions imposed by the US government, and in November 2022, the Biden administration prohibited the approval of new telecommunications equipment from these companies, citing concerns about national security. Additionally, TikTok has been banned from devices issued by various US institutions over worries that the Chinese government could access user data through its parent company, Bytedance, further emphasizing the ongoing tension between the US and Chinese tech entities.
