WeChat ban could impact Apple’s global iPhone shipments: Analyst predicts

Ruben Fields
August 13, 2020

Apple will become a major victim if U.S. President Donald Trump bans Chinese messaging app WeChat, according to an influential analyst. For example, the US' most valuable company, Apple, may be forced to remove WeChat from the App Store.

It is worth noting that WeChat is an extremely popular messaging application in China as it helps to connect with the rest of the world. There are around 1.2 billion active users and if the app is banned globally instead of in the U.S., there's a good chance that the users could backlash at Apple (although it's not entirely their fault). Chinese Android as well as iPhone owners use WeChat extensively, and a worldwide ban on the app could have far-reaching consequences for Apple. The report adds, "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".

An online forum popular with stock investors asked users if they would give up their iPhones or WeChat if Apple eliminated the app from its store: They voted to ditch their phones by a margin of 20 to one. "We estimate that the annual ‌iPhone‌ shipments will be revised down by 25-30%, and the annual shipments of other Apple hardware devices, including AirPods, iPad, Apple Watch and Mac, will be revised down by 15-25%", Kuo explained according to MacRumors.

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Mr Bloomfield said the unknown nature of the new cases meant it was likely there would be more positive cases in the coming days. Because we were the only ones, we had to plan. "Using the app is a big investment in keeping our businesses and economy open".

We quote that worldwide iPhone deliveries will decrease by 25%-30%.

In addition to this, the report also suggests that if the app gets banned in just the United States market, then too, iPhone sales would decline up to 6 percent, and other Apple products sales might fall by 3 percent.

Despite the impact of the coronavirus pandemic on Apple's business in China at the beginning of the year, the smartphone maker has managed to recover. And China, with its population of 1.44 billion people, accounted for about 15% of Apple's total June quarter revenue. "As a result, there is still time for the order to be clarified, modified, or rescinded".

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