Will China’s Expanded iPhone Ban Hurt Apple’s Profits?

Shares of Apple (AAPL) are down more than -1% today after Bloomberg News reported that more Chinese agencies and government-backed firms across the country have ordered staff to stop bringing iPhones and other foreign electronic devices to work, a significant step up from September when a small number of agencies in Beijing and Tianjin began telling staff to leave foreign devices at home.  This heightened prohibition of Apple products is likely to hurt the company’s sales in China, where Apple receives 20% of its revenue. 

Bloomberg News reported that multiple state firms and government departments across at least eight Chinese provinces instructed employees in the past month or two to ditch foreign-made electronics and start carrying local Chinese-made brands.  This broader and more coordinated effort marks a stepped-up effort in China’s campaign to wean itself off American technology and boost the prominence of Chinese brands, including Huawei Technologies Co.