After the signing by the US President of the two executive orders that Banned transactions between the United States and the Chinese companies that own TikTok and WeChatIt is time to take a look at the consequences that this entails for Apple, which has an important market niche in the Asian country.
The one that worries today, and on which even Ming-Chi Kuo himself has spoken in this regard, is the elimination of WeChat from the App Store. As reported by MacRumors, Kuo is optimistic and pessimistic at the same time, all pending to know what is the range of application of the order and if the ban exclusively affects the US or on the contrary to the whole world.
WeChat is the messaging app par excellence in China, with around 1200 million active users per month. Knowing this figure, Ming-Chi Kuo predicts a hard blow for Apple in the event that the ban is effective worldwide, losing the iPhone between 25 and 30% in annual sales and having a collateral impact on the rest of the company’s complementary products with a fall between 15 and 25%. This means that not only is the iPhone damaged by these orders, but that practically the entire range of Apple products would be affected.
It might interest you | The most recommended 12.9-inch iPad Pro cases
In China, in addition to serving as a messaging platform, WeChat services extend to other fields such as mobile payments, e-commerce, social media and productivity. This makes it an essential app for a huge number of users who would find that their devices cannot access it.
In the best-case scenario where WeChat is only banned in the United States, Kuo speaks of a decline in iPhone units sold by 3-6%, with add-on products being affected by less than 3%. Although Apple does not share its annual sales figures, According to known data from last quarter, the Chinese market accounts for 15% of Apple’s business, a more than considerable amount.
The analyst warns investors, since the stock price of companies that are part of the iPhone manufacturing chain may see their numbers fall for fear of a drop in sales of the terminal. At the moment the order will not be effective until next September 20, so there is a 40-day margin to know its effect, and failing that it is modified or terminated.