Apple shares fell as much as 2.9% on Thursday following reports that China has banned the use of iPhones by state-backed agencies and companies.
Investors are certainly concerned about the fate of the tech giant as China is one of its key markets.
As a result, Apple posted its biggest daily drop in more than a month on Wednesday, losing about $200 billion in just two days.
In fact, its shares are now among the worst performers in the Dow Jones Industrial Average.
On Wednesday, the Wall Street Journal reported that Beijing banned the use of iPhones for central government officials.
Later on Thursday, Bloomberg reported that the restrictions had been extended to government-backed firms.
This includes energy giant PetroChina, which employs millions of workers and controls a large part of China's economy.
Analysts at Bank of America wrote in a note Thursday that the potential iPhone ban follows a new high-end flagship smartphone released by Chinese manufacturer Huawei.
Bank of America analysts see the ban as possibly having to do with the new 'high-end flagship' smartphone produced by Chinese tech giant Huawei.
Beijing is the largest foreign market for the company's products, and its sales represented about one-fifth of the company's total revenue last year.
