Apple stock declines amidst concerns over iPhone sales in China

Apple's shares experienced a second consecutive sharp decline on Thursday, driven by reports of substantial restrictions on iPhones in China's government offices and state-owned entities.

The world's largest publicly-traded company saw its shares drop by 2.8 percent to $177.79 during late morning trading.

This decline follows a 3.6 percent drop on Wednesday, triggered by a Wall Street Journal report indicating that China had prohibited the use of Apple smartphones within central government agencies.

On Thursday, Bloomberg News further reported that China intended to extend this ban to government-affiliated agencies and state-owned enterprises, expanding the impact of the policy within the country's centrally planned economy.

As of now, neither Apple nor Chinese officials have responded to AFP's requests for comment.

These developments occur against the backdrop of escalating tensions between Beijing and Washington.

According to the Bloomberg report, Chinese state media celebrated the release of a Huawei smartphone featuring a domestically-produced processor last week, presenting it as a "triumph" following US sanctions.

In its most recent quarter, Apple reported $15.8 billion in revenues from China, constituting nearly 20 percent of its total revenues. Executives noted an increase in Chinese sales during a period when overall sales declined.

Patrick O'Hare, an analyst at Briefing.com, expressed concerns about the implications of the Apple situation for other tech companies, saying, "The worry for the market is that, if China intentionally chooses to create obstacles for a company like Apple, which maintains a significant and vital working relationship in China, it can do the same for many other US companies conducting business in China."

However, Dan Ives, an analyst at Wedbush Securities, estimated that a Chinese government ban would affect less than 500,000 iPhones out of the approximately 45 million projected to be sold in the country in the next year. Ives asserted, "We believe that despite the considerable attention, Apple has experienced significant market share gains in the Chinese smartphone market," adding that increasing sales provide Apple with "additional momentum in this regard."