Iphone one of the largest companies in the world with a market cap of over 2 trillion dollars can face a drop in its revenue this year. Morgan Stanley reported on Friday that the Chinese government has ordered officials at central government departments to refrain from using Apple’s iPhones and other foreign-branded devices for work or bringing them into the office, which might result in a maximum 4% decline in sales for the US tech giant Apple this year.

Reuters reported that analyst Erik W. Woodring said Apple’s share losses in the last two days were “overdone” as he does not believe the curbs will lead to something broader. The report stated that in recent weeks, staff were given instructions by their superiors in workplace chat groups or meetings. However, the scale of the ban is not clear.

Raising the stakes in the race amid tensions with the United States, the article claimed that earlier this year, China asked large state-owned firms to play a crucial part in its effort to achieve technological self-reliance.

iPhone

China imposes ban on Apple devices just before iPhone 15 launch

The ban from China comes ahead of a mega Apple event. In less than a week, the business will introduce its new lineup of gadgets under the iPhone 15 series. Apple will be launching four new phones on September 12 which include iPhone 15, iPhone 15 Plus, iPhone 15 Pro and iPhone 15 Pro Max.

The latest action by Beijing, Apple's second-largest market after the US, may be detrimental. One-fifth of Apple's income comes from the Chinese market. According to the report, several analysts said on Wednesday that the reported move showed Beijing was not willing to spare any US company in its push to reduce its dependence on American technologies.

In its most recent quarter, Apple's revenue from Greater China accounted for more than 19% of its total revenue. According to industry analysis company TechInsights, China last quarter eclipsed the United States as the largest single market for iPhone shipments.

China’s ban on Apple devices aligns with push for domestic brands

According to a report this action could also be seen as China's attempt to promote the use of Chinese brands domestically. This action coincides with rumours that the Chinese smartphone maker Huawei has created a cutting-edge 7nm chipset that is used in the Mate 60 Pro.

The US and China both have placed a strong emphasis on developing technologies that are more autonomous from one another to protect their respective data flows, intellectual property, and national security.

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