Chinese shares dropped as banks in the country cut interest rates less than expected, with the benchmark one-year loan prime rate being lowered by 0.1 percentage point to 3.45%.
Shares of Tesla Inc. dropped 5.0% after the company reduced prices in China for the second time in two weeks, despite experiencing overall volatility this year.
Apple shares have declined due to falling revenue in its product segments, but the company's long-term outlook remains strong, driven by its booming services business and dominant market shares, with two reasons to buy Apple stock being the upcoming iPhone launch and its potential in high-growth industries like AI and virtual/augmented reality.
Apple Inc. experienced a significant decline in its stock price after reports emerged that Chinese government agencies have banned the use of iPhones and other foreign-branded devices by their staff.
Stocks sold off and major indexes closed in the red, while U.S. Treasury yields rose for the second consecutive day; China's trade activity fell in August, but not as badly as expected; Apple signed an agreement with Arm that extends beyond 2040, securing access to the Arm architecture; China reportedly banned government officials from using Apple's iPhone for work; and inflationary pressures and the threat of higher interest rates are causing market concerns.
Asian stocks fell as trade data indicated weakness in the Chinese economy and regional technology shares were hit by the possibility of more U.S. restrictions on China after a supposed Chinese chip breakthrough.
Apple's stock falls after reports that China restricted iPhone use for its government officials, prompting experts to weigh in on the situation.
The Dow Jones Industrial Average dropped after a decrease in initial unemployment claims, while Apple stock declined due to China's order for officials to not use iPhones and other foreign-branded devices for work.
The Nasdaq tumbled due to Apple's falling shares after reports of China banning government officials from using its iPhone and extending the ban to state companies, while the Dow Jones Industrial Average remained flat and the S&P 500 dropped 0.4%.
Apple's recent sell-off due to concerns about a Chinese crackdown on iPhone usage among government workers should not deter investors from the tech giant.
Tech giant Apple has lost $200 billion in market value over the past two days after China banned its government from using iPhones, resulting in a 3.4% drop in shares and making Apple one of the worst performers in the Dow Jones Industrial Average.
Despite reports of China banning iPhone use for government employees, CNBC's Jim Cramer advises investors not to sell Apple, citing the company's ability to adapt and potentially find a compromise with China.
Apple shares face a downturn as China plans to extend its ban on iPhones to government agencies and state companies, potentially wiping out $200 billion of the company's market value, as China's economic crisis threatens demand for consumer electronics and rising US Treasury yields add to Apple's troubles.
Asian shares fell and the dollar's rally stalled as the greenback weakened against most major currencies; concerns over Apple's iPhone sales in China and the expansion of a ban on iPhones in sensitive departments in China to government-backed agencies and state companies also weighed on sentiment.
Shares of major Apple suppliers dropped following reports of China widening curbs on iPhone use by state employees, raising concerns about sales in one of Apple's biggest markets.
Apple shares stabilize after a recent loss following a Chinese crackdown on iPhone use, while Disney channels remain blacked out for Charter subscribers, and other notable stock updates are highlighted.
Rumors of an iPhone ban for government employees in China caused major market benchmarks, including Apple (AAPL), to experience a down week and sparked concerns over tensions between the US and China.
The Hong Kong-listed shares of Alibaba Group fell over 4% after the surprise departure of former CEO Daniel Zhang from the company's cloud computing business.
Chinese office workers are concerned that their employers may ban iPhones following a growing trend of state enterprises and companies ordering staff to stop using Apple devices.
U.S. stocks fell on Tuesday, with tech stocks dragging down indexes after Apple unveiled its latest iPhone and the Justice Department's antitrust case against Google went to trial in Washington. The Nasdaq sank 1%, while the S&P 500 fell 0.6% and the Dow Jones Industrial Average closed 0.1% lower.
Apple is facing growing troubles in China, with tensions rising between the US and China, the ban on government employees using iPhones, and China's economic woes, prompting the tech giant to shift its focus to India as a potential market for growth.
The article does not mention any specific stock recommendations. However, it discusses Apple (NASDAQ:AAPL) extensively and highlights the author's positive view towards the company's valuation and growth prospects.
The author's core argument is that while Apple's growth has slowed, its elevated valuation is justified due to factors such as its superior competitive position, strong brand and connection with consumers, solid prospects for future growth, and strong financial position.
Key information and data mentioned in the article include:
- The Wall Street Journal reported that the Chinese government had banned iPhones for government employees, but the Chinese government later denied this report.
- If the ban had been true, analyst Dan Ives estimated it would be a hit of half a million iPhones, but he referred to it as "more bark than bite."
- Apple's growth has slowed, but its high valuation is justified due to its many advantages, including its competitive position and strong financials.
- Apple's valuation is less dependent on current earnings and more focused on long-term prospects.
- Apple's revenue is comparable to other massive companies, but it still has room for growth, especially in the high-margin services segment.
- Apple's dependence on China is both a risk and an advantage, as China is also dependent on Apple.
- The Chinese economy is facing challenges, and a cooperative relationship between the US and China would benefit Apple and the global economy.
- The author believes that Apple's strong management and adherence to secrecy and compartmentalization give it a unique edge.
- The author suggests that expectations for Apple may be too low if globalization is not receding as expected.
Shares of Microsoft Corp. fell 2.50% as the stock market experienced a dismal trading session, ending its two-day winning streak.
Shares of China Evergrande Group fell 25% after police detained staff at its wealth management unit, adding to the embattled developer's troubles amidst China's real estate crisis.
Microsoft's shares have outperformed Apple's as investors see better growth prospects and less China risk, making some analysts believe that Microsoft may overtake Apple as the world's highest-valued company.
Starbucks Corp. shares dropped by 2.16% as the stock market took a hit, resulting in their third consecutive day of losses.
Shares of Coca-Cola Co. fell 4.1% due to concerns about high interest rates and a slowing job market impacting the U.S. economy.
Tesla's stock fell nearly 1% after the company cut prices on some models and reported third-quarter deliveries that missed market expectations.
Tesla shares fell after the company lowered prices on its Model 3 and Model Y vehicles in the U.S. to boost demand, following lower-than-expected third-quarter deliveries.
