Apple shares fell almost 3 per cent on Thursday, wiping out about $190 billion of market value in just two days, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies.
Shares of the Cupertino, California-based company dropped 6.4 per cent in the worst two-day slump in a month.
Apple is the biggest component in major US equity indexes, adding to a broader sell-off sparked in part by a litany of woes in China.
The world’s second-biggest economy has been slumping amid a protracted crisis in its real estate market, threatening demand for everything from commodities to consumer electronics.
It was reported on Wednesday that central government agency officials were told not bring iPhones into the office or use them for work.
The next day it was reported that Beijing plans to expand the ban on the use of iPhones in sensitive departments of government-backed agencies and state companies, a sign of growing challenges for Apple in its biggest foreign market and global production base.
In addition, Beijing intends to extend that restriction far more broadly to a plethora of state-owned enterprises and other government-controlled organisations, people familiar with the matter said.
Adding to Apple’s troubles are rising US Treasury yields as bonds sell off on worries the US Federal Reserve will have to step up its fight against inflation as the US economy remains resilient.
The news is having a widespread effect on the markets, with investors selling everything from chips, mega-cap technology to US-listed Chinese stocks.
“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.”
Bank of America analyst Wamsi Mohan noted that the “timing of the potential ban is interesting”, given the recent launch of Huawei Technologies' high-end 5G-capable smartphone.
The teardown of the new device shows that Beijing seems to be making early progress in a nationwide push to circumvent US efforts to contain its ascent, with Huawei’s Mate 60 Pro being powered by Semiconductor Manufacturing International's 7nm chips, according to analysis TechInsights conducted for Bloomberg News.
If Beijing goes ahead with a ban, the unprecedented blockade might also affect several other US technology companies that rely on sales and production in China.
Apple suppliers across continents were trading lower on Thursday as multiple reports confirmed China’s latest changes.
However, bullish analysts like Wedbush Securities’ Daniel Ives think the effect of an “iPhone ban is way overblown” as it would affect less than 500,000 iPhones of the roughly 45 million he expects to be sold in the country over the next 12 months.
“Despite the loud noise Apple has seen massive share gains in China smartphone market,” Mr Ives, who has an overweight rating on the stock, wrote in a note.
Apple is unlikely to face a material financial impact from China’s restrictions, according to Evercore ISI’s Amit Daryanani.
Government officials were probably already avoiding the company’s products, and it would be hard for the nation to take more substantive action against Apple without affecting jobs in the country, which is where most iPhones are assembled, he wrote.
The specs
Engine: 3.8-litre twin-turbo flat-six
Power: 650hp at 6,750rpm
Torque: 800Nm from 2,500-4,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 11.12L/100km
Price: From Dh796,600
On sale: now
The specs: 2018 Jeep Compass
Price, base: Dh100,000 (estimate)
Engine: 2.4L four-cylinder
Transmission: Nine-speed automatic
Power: 184bhp at 6,400rpm
Torque: 237Nm at 3,900rpm
Fuel economy, combined: 9.4L / 100km
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
SPEC%20SHEET%3A%20NOTHING%20PHONE%20(2A)
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Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
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Zayed%20Centre%20for%20Research
%3Cp%3EThe%20Zayed%20Centre%20for%20Research%20is%20a%20partnership%20between%20Great%20Ormond%20Street%20Hospital%2C%20University%20College%20London%20and%20Great%20Ormond%20Street%20Hospital%20Children%E2%80%99s%20Charity%20and%20was%20made%20possible%20thanks%20to%20a%20generous%20%C2%A360%20million%20gift%20in%202014%20from%20Sheikha%20Fatima%20bint%20Mubarak%2C%20Chairwoman%20of%20the%20General%20Women's%20Union%2C%20President%20of%20the%20Supreme%20Council%20for%20Motherhood%20and%20Childhood%2C%20and%20Supreme%20Chairwoman%20of%20the%20Family%20Development%20Foundation.%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
The years Ramadan fell in May
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Tests: 53; Innings: 98; Not outs: 11; Runs: 4,594; Best score: 254; Average: 52.80; 100s: 11; 50s: 27
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Mane points for safe home colouring
- Natural and grey hair takes colour differently than chemically treated hair
- Taking hair from a dark to a light colour should involve a slow transition through warmer stages of colour
- When choosing a colour (especially a lighter tone), allow for a natural lift of warmth
- Most modern hair colours are technique-based, in that they require a confident hand and taught skills
- If you decide to be brave and go for it, seek professional advice and use a semi-permanent colour
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GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Mohammed bin Zayed Majlis
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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