Apple’s market cap dropped by over $190 billion after facing a ban in China.
👉 Background: Apple is an absolute behemoth - we’re talking a market cap over $2.7 trillion USD…including a lazy $62.5 billion USD on hand in the bank.
👉 What happened: Late last week, Apple’s market cap dropped by over $190 billion USD because Chinese authorities told government workers that iPhones will be banned in all government agencies.
👉 What else: The current ban is aimed at government employees, which is expected to only affect around 500,000 iPhone sales per year. But the concern is that this could expand to all Chinese citizens in the future...which is around 45 million iPhones per year.
💡When politics and business collide, no company is safe. And companies that are operating across the clashing countries are often caught in the crossfire. Right now, Apple is no exception.
💡Western countries are trying to reduce their reliance on Chinese hardware and software. For example, the US and Australia, have forced government-employees to remove TikTok from their phone.
💡And now it seems like China is doing the same. But for Apple, which earns one fifth of its revenue from China, it seems like they may just be collateral damage.
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