According to WSJ, China ordered officials at central government agencies not to use Apple's iPhones and other foreign-branded devices for work or bring them into the office. In recent weeks, staff were given the instructions by their superiors in workplace chat groups or meetings, which added that it wasn't clear how widely the orders were being distributed.
A wider ban of iPhones would be a major concern, not just for Apple (AAPL), but for US-China relationship and US companies operating in China. This may seem like a surprise given that CEO Tim Cook and China has a pretty good relationship, as demonstrated by his praises of China over the years and his meetings with various Chinese ministers. Greater China accounts for ~20% of Apple's revenues and was the highest growth segment in its recent earnings release. This sounds like a tit-for-tat move, similar to the TikTok ban on government devices in the US. This news also follows a highly marketed, new smartphone from Huawei and before Apple's new iPhone event on Sept 12th. There's speculation that Huawei's new chips could potentially violate trade restrictions, which could lead to more scrutiny of Chinese tech companies.
All of this is weighing on sentiment this morning.
