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Several mega-cap technology stocks and suppliers to Apple (AAPL) tumbled last week after the Chinese government banned iPhones from government-backed agencies and state companies, thereby threatening iPhone sales. Also, suppliers to Huawei Technologies came under pressure last week, with some U.S. lawmakers calling for a halt to all U.S. exports to the company.
Apple lost more than -5% last week on news that the Chinese government plans to expand a ban on using iPhones in sensitive departments to government-backed agencies and state companies. The action by China threatens to erode Apple’s position in China, a market where Apple receives about 20% of its yearly revenue. However, most analysts believe China is unlikely to completely ban iPhones as the country still benefits greatly from Apple’s presence.
