While an executive order signed by US President Donald Trump will ban TikTok in the US starting in the middle of next month, another executive order from the president bans US companies from doing business with the WeChat app, which also starts in mid-September. As we mentioned last week, this executive order could hit back in the face of the administration as it could severely reduce iPhone sales in China. And if Apple is forced to remove WeChat from the App Store, Huawei’s phones (and others more on that later) will take advantage of the absence of the “super-app” from the iOS app.
Out of 1
00 Chinese iPhone users, 95 would change brand rather than lose WeChat
You see, WeChat is a must-have app in China with over a billion billion people using it as a web browser, an email app, an app for online shopping and mobile payments and more. A comment published by Bloomberg from Hong Kong resident and iPhone user Kenny Ou summarizes the situation. If Apple forced to remove WeChat from App Store, Ou says his iPhone will turn into “expensive electronic junk.” This is because, like many iPhone Chinese consumers, he sees the app as one of the most important software features on his handset. Ou, an engineering student, stated that he can have a tough decision to make. “All my products come from Apple – my Macbook, iPad, iPhone and even AirPods. Apple has created a robust connection of its products and made me strongly dependent on their brand. It would be a huge disaster for my studies and work on such a ban was imposed. “
Most iPhone owners in China would rather drop an iPhone than lose WeChat
Shanghai Commodities trader Vincent Han was planning to replace his Huawei phone with an iPhone. However, these plans have changed due to the possible WeChat ban. He said: “I’m worried that WeChat will be banned on the iPhone. This will affect my work to a large extent, as 90% of my clients and colleagues communicate via WeChat. Yet Samsung’s Android operating system is also developed by Google and I is concerned that the Android platform will also exclude WeChat. “
It’s not just iPhone sales in China that could be affected by the removal of WeChat from the iPhone. TF International analyst and man who knows what the cafeteria in Cupertino will earn on this date 2023, Ming-Chi Kuo recently predicted that global sales of iPhone this year will fall 25% to 30% if Apple is forced to remove WeChat from its iOS -butiksfönster. Kuo also sees a global decline in sales ranging from 15% to 25% for Apple’s AirPods, iPads and Apple Watch if the Trump administration bans WeChat from the App Store.
WeChat parent Tencent believes that Trump’s executive order will apply to WeChat in the United States. As a result, the Chinese version of WeChat, Weixin, will remain available in the App Store. If so, iPhone sales may not be affected as negatively as originally thought. China’s Weibo microblogging service still surveyed 1.2 million people and asked them to choose between WeChat and their iPhone. 95% of respondents said they would rather give up their iPhone than lose WeChat.
Apple began shipping the iPhone in China as early as 2009 and since then it has shipped 210 million units in the country. As of June, 20% of Chinese smartphone owners used an iPhone compared to the 26% who played a Huawei phone. China is still the world’s largest smartphone market and as such is still an important region for Apple. In the most recent fiscal year, Greater China contributed 17% of Apple’s total revenue, or $ 43.7 billion. At its peak, Greater China accounted for one in every $ 4 spent on an Apple product or service.
If Apple is forced to stop offering WeChat, there are other Asian-based companies waiting in the wings, including Xiaomi, Oppo and Vivo.