Banning WeChat from the App Store could severely impact iPhone sales in China. According to predictions by analyst Ming-Chi Kuo, sales could fall by 30% in the Middle Kingdom. Ultra popular in the country, the disappearance of the app from the App Store could push Chinese users to switch to Android smartphones.
As you probably know, TikTok and WeChat are on the way to being banned from the United States by the Trump administration. For President Donald Trump, these two Chinese applications represent a threat to the country's internal security. While Microsoft has already positioned itself to buy out TikTok's entire business, the White House tenant has since signed two presidential decrees to speed up operations.
Donald Trump gives US companies 45 days to buy TikTok and WeChat. Once this period has expired, no redemption will be possible. But, according to analyst Ming-Chi Kuo, the ban of WeChat from the App Store could impact iPhone sales in China severely.
WeChat, an essential application in China
Indeed, the app is particularly popular in the Middle Kingdom. Much more than instant messaging, the app also offers payment services, social features, news, and e-commerce. It is even possible to access official documents through WeChat. Clear, WeChat serves as a must-have Swiss Army knife app in China, so much so that many users consider it " an OS in the OS " because of the multiple services it offers.
According to Ming-Chi Kuo, two scenarios are possible:
- WeChat is banned from the App Store worldwide : iPhone sales in the Chinese market could drop by 25 to 30%, while sales of iPad, AirPods or Apple Watch could drop by 15 to 25%
- WeChat is only banned from the App Store in the United States : iPhone sales could drop by 3 to 6%, while those of other Apple products could fall by 3%
As a reminder, it is estimated that the Chinese market represents no less than 20% of the apple brand revenue. In other words, it is impossible for the manufacturer to do without such a financial windfall. The next few months will therefore be decisive for the Cupertino company, which could well be another collateral victim of the trade war between the United States and China.
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