Apple (AAPL:US) shares declined a further 3.3% on Thursday after previously losing 3.6% on Wednesday.
The ongoing selloff in Apple shares comes as investors are evaluating the implications of China's decision to ban the use of iPhones by government officials during work hours, which was reported by the Wall Street Journal.
The ban on iPhones for government officials in China has raised concerns about Apple's market and revenue in one of its significant markets, contributing to the downward pressure on the stock price. China accounts for 19% of Apple’s total revenues.
At the same time, China tech giant Huawei introduced a new smartphone capable of ultrafast data connectivity. This development, coupled with the rumored ban on government officials using iPhones for work in China, could pose serious challenges to Apple's iPhone sales in the country.
Wall Street analysts estimated that Apple could lose as many as 20 million iPhone shipments in 2024 due to the abovementioned risks.
“The government ban and the new Huawei phone will be material events for the iPhone,” said analysts at Oppenheimer. “The two combined will drive more Android users to upgrade to the Huawei, or iPhone users going back to Huawei,” Oppenheimer analysts said.
Apple stock is now up less than 45% year-to-date.