The Apple Inc (NASDAQ: AAPL) share price is having a tough week.
Following a heavy decline overnight, the iPhone maker's shares have now lost over 6% of their value this week. And that's despite Wall Street being shut on Monday for the Labor Day public holiday.
Image source: Apple.
Why is the Apple share price falling?
There are a couple of reasons for the weakness in the Apple share price this week.
The first is concerns over the prospect of rising interest rates in the United States, which has put significant pressure on the tech sector.
This has been driven by a sizeable lift in the ISM Services index for August and escalating oil prices, which are hinting at potential inflationary pressures.
Given that the services industry accounts for more than two-thirds of the US economy, this strong rise has sparked fears that the US Federal Reserve will need to take further action to tame inflation.
What else?
Also weighing on the Apple share price this week has been speculation that China is banning government workers from using iPhones.
The Wall Street Journal is reporting that China has ordered officials at central government agencies not to bring iPhones into the office or use them for work. This hasn't been confirmed by the government, but CNBC has suggested that Apple's products are being caught up as U.S. and China tensions escalate.
This would be bad news given that Apple generates 18% of its total revenue across the Greater China market. It also assembles the majority of its products in the region.
And while only an estimated 5% of its sales in the region are to government employees, there are fears that the ban could have a bigger impact. Bernstein analyst Toni Sacconaghi said:
Perhaps more importantly, restricted use of iPhones among government employees could negatively impact sales among consumers (related family members; general populace) and could be part of a broader move by the Chinese government to promote usage of domestic technology.
The Apple share price remains up 15% over the last 12 months.
