Apple Loses $200B Following China’s iPhone Ban — Retail Bum

Apple’s stock has dropped by 6.7% over the past two days following reports that the Chinese government has banned the use of iPhones at government-backed agencies and companies.

The company’s stock has so far lost $200 billion and is currently the worst performer on the Dow Jones Industrial Average. Its loss also impacts the broader stock market, with investors selling off stocks of U.S.-listed Chinese companies, mega-cap technology, and chip companies.

“The Nasdaq is sinking as one bad Apple spoils a bunch of mega-cap tech stocks,” said Edward Moya, senior market analyst at OANDA. “Apple’s growth story is heavily reliant on China, and if the Beijing crackdown intensifies, that could pose a big problem to the bunch of other mega-cap tech companies that rely on China.”

The ban was initially imposed on central government officials but later expanded to include state-backed businesses. One of them is PetroChina, a powerful player that employs millions of workers and has significant sway over the Chinese economy.

Chinese government’s decision hints at a murkier future for Apple as China is one of its largest markets in the world and accounted for a fifth of its revenue last year. The situation is even more challenging for Apple because the iPhone, its flagship product…