The US is all in for a ban on Chinese apps such as TikTok and the most popular of them all -- WeChat -- as it has banned transactions with the apps' owners. However, this could possibly lead to a problem Apple might face, specifically about iPhone sales worldwide. Read on to know more about this.
WeChat ban can lead to decreased iPhone sales
It is suggested that if the Cupertino tech major removes the WeChat app from its App Store globally, the removal can affect iPhone sales around the world. For those who don't know, Apple is most likely to delist the popular Chinese app from its app store post the US's executive order that restricts any transaction taking place between the US and Tencent-owned WeChat or ByteDance-owned TikTok.
The prediction comes in from popular analyst Ming-Chi Kuo who suggests that the iPhone sales will decline by 25% to 30% globally. This will be due to WeChat's popularity not only in China but in other countries, accounting for around 1.2 billion monthly active users. In addition to this, shipments of other Apple products such as AirPods, iPad, Apple Watch, and Mac will decrease by 15% worldwide.
Kuo, via a research note, stated, "Since WeChat is very critical to Chinese users, integrating communications, payments, e-Commerce, social software, news reading, and productivity functions, we believe that the move will tank iPhone shipments in the Chinese market."
On the contrary, if Apple removes WeChat only in China, iPhone sales are likely to see a dip by 3% to 6%. Other Apple products' sale will suffer by less than 3%. Kuo advised investors of companies in Apple's supply chain should reduce their stock holdings if this were to happen.
However, there is nothing concrete at the moment as the executive order will be in effect by September 20 and there are high chances things can possibly change by then.