China has ordered officials at central government agencies to not use Apple iPhones or other foreign pieces of technology for work. The ban also prevents government employees from bringing these devices into their offices.
Though China had previously restricted government officials from using iPhones at work, this recent measure represents an expansion of that order, according to The Wall Street Journal.
Apple, China’s State Council Information Office and the National Civil Service Administration did not respond to a request for comment from The Wall Street Journal.
Apple’s stock fell by roughly 3% on September 7, just one day after the company’s shares experienced a 4% decline.
According to CNBC, a ban on iPhone usage by government employees could lead to a 5% decrease in Chinese iPhone unit sales, wrote Bernstein analyst Toni Sacconaghi on September 7.
“Restricted use of iPhones among government employees could negatively impact sales among consumers (related family members; general populace) and could be part of a broader move by the Chinese government to promote usage of domestic technology,” Sacconaghi wrote.
The ban could be seen as a response to a recently signed executive order by President Joe Biden that limits the amount of U.S. investment and expertise, in areas like semiconductors, microelectronics, quantum computing and artificial intelligence, being provided to China, Macao and Hong Kong. That measure is expected to take effect in 2024.
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- Source: https://www.supplychainbrain.com/articles/38065-china-bans-government-employees-from-using-iphones-at-work
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