Apple Inc (AAPL)

[Investors3]

Citi: The market may have have overreacted to China’s state employee iPhone curbs
Thursday, September 7, 2023 8:37 am

China has in recent weeks widened existing curbs (extent unknown) on the use of iPhones by state employees, The Wall Street Journal reported Wednesday. Citi analysts on Thursday said the market may have overreacted to the “news.”

Julie Zhu and Kevin Yao for Reuters:

Staff in at least three ministries and government bodies were told not to use iPhones at work, said the sources, who declined to be named due to the sensitivity of the situation.

One of the sources said they had not yet been given a deadline to cease their iPhone use.

It was not immediately clear how widely the ban was being enforced, with a third source at one of the three ministries saying he was still using an iPhone and had not yet heard about the restriction.

In 2020, state-owned Chinese financial publication Economic Observer reported that some government agencies had implemented rules to ban officials from using iPhone due to Apple’s strict privacy rules that make it difficult for anti-corruption officials to access and investigate suspects’ phones.

Apple’s shares slipped on Wednesday and Thursday after the Wall Street Journal first reported the move…

Citi analysts noted that the news had also weighed on the shares of Apple suppliers and said the market may have “have overreacted to the news flow amidst weak confidence overall,” citing how shares in suppliers of U.S. automaker Tesla tumbled but quickly recovered after reports of China restricting its cars from entering military complexes in 2021.

MacDailyNews Take: Gee, ya think?
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As always, take the irrational AAPL discounts when they arise.
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Enjoy your slow, ugly iPhone knockoffs, some unknown portion of Chinese Communist Party drones!

https://macdailynews.com/2023/09/07/citi-the-market-may-have-have-overreacted-to-chinas-state-employee-iphone-curbs/