China extends iPhone ban

China plans to extend the ban on iPhone use in sensitive departments to state-sponsored institutions and enterprises.

Sources familiar with the matter confirmed the Wall Street Journal report yesterday, saying that many institutions have begun ordering staff not to bring their iPhones to work.

In addition, sources who asked not to be named said Beijing plans to expand the restriction to include state-owned companies and other government-controlled entities.

WHY IS IT FORBIDDEN?

The ban is part of Beijing’s effort to reduce its reliance on American software and hardware and end the use of foreign technology in sensitive environments.

On the other hand, the ban threatens Apple’s position in the market, which is home to factories that generate about a fifth of its revenue and employ millions of Chinese. Furthermore, China is known as the country where most of the iPhones in the world are manufactured.

According to the sources, it is not clear how many agencies can impose restrictions on personal devices. No official or written action has yet been taken on the issue. Government agencies are believed to differ in the application of the bans.

ACTIONS BELOW

Elsewhere, the prospect of China hurting Apple rattled US investors on Wednesday. Apple shares in New York fell 3.6 percent on a daily basis, its biggest single-day drop since August.

Apple had gained 46 percent this year as part of the broader rise in technology stocks.