'Apple Becomes the Biggest US-China Pawn Yet'

Apple might be the king of tech. But in the growing cold economic war between the world's two biggest economies, it is becoming just another game piece -- albeit a big one. WSJ: Still the world's largest public company by market value, Apple has seen that value take a notable hit this week on increasing signs that its business in China might be coming under threat. The Wall Street Journal reported on Wednesday that the Chinese government is banning the iPhone and other foreign-branded devices from use by workers at central government agencies. Bloomberg reported Thursday that such a ban might also be extended to state-owned enterprises and other government-backed entities. That could amount to a significant swath of people in a state-led economy with a population totaling more than 1.4 billion. According to China's National Bureau of Statistics, about 56.3 million urban workers were employed by "state-owned units" in 2021. Those jobs commanded an average wage about 8% above the national urban average -- an attractive segment for a company specializing in premium devices. And because Apple now ships roughly 230 million iPhones globally every year, 56 million would be a notable chunk to take out of the pool of potential buyers -- especially in a mature global smartphone market with low growth prospects. [...] Apple's stock price has thus slumped nearly 7% over the past two days, costing the company about $194 billion in market value. That might seem excessive considering the many unknowns about the reported iPhone bans and how they could ultimately play out. Also, China has at least some interest in not overly harming a major local employer during a time of growing unemployment. One Chinese city alone reportedly has more than one million workers building Apple products or employed in related jobs.

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