Apple stock falls as China woes continue
Apple (NASDAQ:AAPL) shares fell 1.5% in early Monday trade as investors were digesting updates from China.
Asian investor confidence was shaken as Beijing initiated several investigations into Foxconn (TW:2354), a key Apple supplier.
According to local media reports, the tax inspections were conducted at Foxconn facilities in two Chinese provinces. Moreover, China's natural resources department conducted on-site investigations into land use by key Foxconn businesses in the provinces of Henan and Hubei.
Foxconn has expressed its willingness to cooperate with the investigation.
«Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn),» the company said in a statement.
«We will actively cooperate with the relevant units on the related work and operations.”
It could be that China is hitting back at the U.S. by targeting one of its biggest companies — Apple.
Elsewhere, Reuters reported that Chinese retailers are offering deep iPhone 15 discounts.
Chinese e-commerce platforms, including Pinduoduo (NASDAQ:PDD) and Taobao, are providing significant discounts on Apple's iPhone 15 series, selling some models for up to 900 yuan ($123) below the retail price.
Pinduoduo is reportedly selling the 128 GB version of the iPhone 15 Plus for 6,098 yuan, which is 900 yuan less than Apple's retail price of 6,999 yuan. Similarly, the 512 GB iPhone 15 Pro Max, priced at 11,999 yuan in Apple's store, is available for 10,698 yuan on Alibaba (NYSE:BABA)'s e-commerce platform Taobao.
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