Apple stocks fell 4%, triggering a rout in the US stock market, after the Chinese government widened curbs on iPhone use by government officials, Reuters reported.
The US company witnessed its worst one-day fall in over a month on Wednesday, said the report.
The setback came as China, one of the biggest markets of Apple, asked its employees to stop using iPhone at work.
According to the report, Apple suppliers and companies with large China exposure including Broadcom, Qualcomm and Texas Instruments fell between 1.2% and 2.8%.
The fall in Apple stocks also pulled down three main US stock indices.
China and the US have been engaged in a trade battle for a long time. While the US has cut Chinas access to various critical technologies, such as chips, China has reduced its dependence on American technology and restricted shipments from U.S. firms including planemaker Boeing.
Apple is also struggling with falling iPhone sales. The company would have reported a less-than-impressive quarterly earnings report last month had it not been for its performance in the Chinese market.
