Apple Inc (NASDAQ:AAPL) shares extended Wednesday's falls in pre-market trading after reports China may be setting limits on the use of iPhones by state-linked employees.
The Wall Street Journal reported Wednesday that China had banned government officials from using iPhones for work purposes, while Bloomberg said overnight that Chinese officials could extend that ban to government-backed agencies and state companies.
Shares of Apple which fell 3.6% in Wednesday's session, were off 3.0% in Thursday's premarket action.
In recent weeks, Chinese officials were given the instructions by their superiors in workplace chat groups or meetings, the Wall Street Journal reported, adding that it wasn’t clear how widely the orders were being distributed.
China is one of Apple’s biggest markets and generates nearly a fifth of its revenue.
The Bloomberg story noted that it was unclear how China would enforce the ban, as some entities may forbid employees from using iPhones just in work settings while others could opt to ban their usage entirely.
The ban could trigger concerns among foreign companies operating in China as Sino-US tensions escalate and comes ahead of an Apple event next week that analysts believe will be about launching a new line of iPhones.