Apple Tumbles as Fears Grow over China iPhone Curbs

A man walks beside an Apple store at a mall in Beijing, China, 07 September 2023. EPA/WU HAO
A man walks beside an Apple store at a mall in Beijing, China, 07 September 2023. EPA/WU HAO
TT
20

Apple Tumbles as Fears Grow over China iPhone Curbs

A man walks beside an Apple store at a mall in Beijing, China, 07 September 2023. EPA/WU HAO
A man walks beside an Apple store at a mall in Beijing, China, 07 September 2023. EPA/WU HAO

Apple fell nearly 4% on Thursday and sparked a selloff in tech stocks after reports that China has widened curbs on iPhone use by government staff in one of the US company's biggest markets.
The world's most valuable firm was set to lose around $100 billion in market value after suffering its worst one-day drop in more than a month on Wednesday.
Apple suppliers and companies with large China exposure including Broadcom, Qualcomm and Texas Instruments fell between 1.4% and 4.7%. The iPhone maker's drop also weighed on the three main US stock indexes.
Reuters reported earlier in the day that Beijing told employees at some central government agencies in recent weeks to stop using their Apple mobiles at work.
The reported move deepened fears about the financial toll from rising tensions between Washington and Beijing.
The US has in recent years restricted China's access to key technologies including cutting-edge chips, while Beijing has tried to reduce its reliance on American tech and curbed shipments from US firms including planemaker Boeing.
Several Wall Street analysts said the curbs on the iPhone show that even a company with a good relationship with the Chinese government and large presence in the world's second-largest economy was not immune to rising Sino-US tensions.
The moves by Beijing also come at a time when Apple is grappling with a decline in iPhone sales, with China being a bright spot in what was an otherwise disappointing quarterly earnings report last month.
"The restrictions have the potential to slow Apple's sales growth in China. This could provide an additional challenge for the company," said D.A Davidson analyst Tom Forte.
Some analysts have also warned of a potential sales hit due to Huawei's new Mate 60 Pro smartphone, which is powered by an advanced chip made by Chinese contract chipmaker SMIC and marks a breakthrough for the duo hit by US sanctions.
The sanctions had hammered Huawei's sales in its home country and allowed Apple to take some market share from the national favorite.
"If Huawei has the capability to supply and scale its home-grown Kirin 9000S (chips), we see the Mate series phone as an opportunity for Huawei to increase its shipments and regain its market share," analysts at Bofa Global Research said.
Apple could, however, see a demand boost after an event next week where it is expected to unveil its iPhone 15 line-up.



Peru's Economy Grows 4.07% Year-on-year in January

A worker walks pasts the logo of the Central Reserve Bank of Peru (BCRP) inside its headquarters building in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo/File Photo
A worker walks pasts the logo of the Central Reserve Bank of Peru (BCRP) inside its headquarters building in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo/File Photo
TT
20

Peru's Economy Grows 4.07% Year-on-year in January

A worker walks pasts the logo of the Central Reserve Bank of Peru (BCRP) inside its headquarters building in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo/File Photo
A worker walks pasts the logo of the Central Reserve Bank of Peru (BCRP) inside its headquarters building in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo/File Photo

Peru's economy grew 4.07% in the first month of 2025, data from the nation's INEI statistics agency showed on Saturday, in line with central bank and analysts' forecasts, as nearly all sectors logged growth with the exception of the financial sector.

The January data landed a touch above the 4% estimate of analysts polled by Reuters, but below the 4.85% recorded in last month of last year.

The Andean nation's key mining and energy sector advanced 1.4%, while farming and the smaller fishing sector advanced 3.2% and 23.5% respectively.

Manufacturing industry expanded by 5.5% and transportation up 7.9%, while public administration and defense and construction both logged growth of over 4%.

The financial sector contracted 0.35% as commercial banks issued fewer loans.

In a call on Friday, the top economist at Peru's central bank had said that economic activity was developing better than expected, as the economy bounced back from a recession it entered in 2023.

The bank predicted a limited impact from US tariffs, saying Peru's agricultural produce complemented North American supplies when they are not able to produce locally for seasonal reasons, and copper exports can be sold to many other markets.

Late last month, Peru's economy minister predicted the economy would expand 4% this year - up from 3.3% growth in 2024 and a 0.4% contraction a year earlier - ranking it among the fastest-growing economies in Latin America.