Apple (NASDAQ: AAPL) enthusiasts and tech enthusiasts alike eagerly tuned in to the September 12 Apple Event to witness the unveiling of the company’s latest innovations. Among the highlights was the much-anticipated new iPhone model.
However, just a day after this grand reveal, on September 13, Bloomberg reported alarming news that China had raised security concerns regarding Apple’s flagship smartphone. This development may spark concerns among Apple investors, who have been savoring the company’s impressive stock market performance this year.
Notably, China said it has distinguished security issues with Apple’s iPhones. The warning came as Beijing is reportedly extending a ban on the use of the devices in sensitive sectors, with the prohibition expected to include government-backed agencies and state firms.
“We notice that there have been some security incidents concerning Apple phones.”– Chinese Foreign Ministry spokeswoman Mao Ning said at a press briefing.
Ning did not provide further details about the concerns, except to add that the country “has not issued laws and regulations to ban the purchase of Apple or foreign brands’ phones.”
What does this mean for Apple stock?
The company saw its market capitalization surge beyond $3 trillion in June, making it the first-ever stock to reach this milestone. Apple’s valuation has somewhat retreated since then, though the stock’s performance remains strong with a year-to-date surge of over 40%.
At the time of publication, AAPL’s price was standing at $176.30, down 1.71% in the past 24 hours.
The stock fell more than 6% over the past week, while its monthly performance remained relatively flat.
While China’s security concerns undoubtedly pose a challenge to Apple’s reputation, their impact on the company’s stock remains uncertain.
Apple, as the world’s largest company by market cap, has weathered various storms in the past, demonstrating its resilience. Historically, AAPL shares have shown stability and reliability, making it a steadfast choice for many investors over the years.
Having said that, it remains to be seen how these recent developments will affect Apple’s performance in the stock market.
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