Apple shares went down because of China's crackdown
Apple shares went down because of China's crackdown

Apple shares went down because of China’s crackdown

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Currently, Apple shares are trading at 177 USD which is 3.23% down from yesterday’s close. This downfall since yesterday has removed 200 billion dollars from its market cap.

The major reason for this downfall is China’s ban of iPhones for its government employees at work.

The Wall Street Journal reported that this ban would be equal to a hit of less than 500,000 units. It is important to note that China is a big market for Apple because of iPhones.

Soon, the iPhone 15 is going to be launched. If we assume that this ban of Central workers not using would expand to State workers then it could turn fatal for the Apple Shares.

However, according to Evercore ISI analysts, China represents around 19% of Apple’s revenue, and it supports more than 5 million jobs in China as of 2019. Therefore, it would be difficult to put a broader ban on iPhones in China.

One thing to note that, if Apple moves its supply chains out of China at a faster pace then it won’t be surprising to see a wider ban of iPhones in Chinese economy.

Therefore, it is important to track the fundamentals of Apple company to gauge the movements of the Apple share price.

According to John Roque, senior managing director at 22V Research, the stock price of Apple could fall to 150 dollars because of the chart and its history.

Apple shares are down 10 per cent from the its high reached in July.

It feels to me that, China’s ban was a trigger point for the stock to go down, therefore further movements from the Chinese government on the iPhone ban would prove to be an important factor for the Apple Share price.

Let’s see how it works for the Apple share price in the future. In the meantime, it is good for the market to go down so that people can buy at lower prices.

Read: TECHNICAL ANALYSIS: A BEGINNER’S GUIDE

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Saifullah Khan

Hi there, I am the author of gloomyworld.com, read more about me here.

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