Why Are Apple Shares Falling Over 2% Premarket Today?

Shares of Apple, Inc. AAPL declined in premarket trading on Thursday, signaling that the stock could extend its losses for a second straight session.

The stock ended Wednesday’s session down 3.58% at $182.91, according to Benzinga Pro data. In premarket trading, the stock was losing 2.64% to $178.09.

The negative sentiment toward Apple’s shares was built on the back of two developments. Chinese tech company Huawei, which once held an appreciable share of the domestic smartphone market, lost ground amid the U.S. ban on its telecommunication equipment.

Huawei has launched Mate 60 Pro, a faster smartphone that has undercut the iPhone, just ahead of the unveiling of Apple’s next iteration of its flagship product.

An Oppenheimer analyst estimated that Apple could lose 10 million iPhone shipments in 2024 due to the new Huawei phone.

The stock also took a hit from China’s decision to ban iPhones from government offices. A Bloomberg report said Thursday that China plans to expand a ban on the use of iPhones in sensitive departments to government-backed agencies and state companies.

The focus now shifts to the Sept. 12 iPhone launch event, which Apple has promoted with the tagline ‘Wonderlust.’

See Also: Everything You Need To Know About Apple Stock