Kuo lowers iPhone shipping expectations by up to 30% due to removal of WeChat

Wechat

The analyst does not miss his opportunity and offers some downward figures regarding iPhone shipments if it is finally decided to force Apple to remove WeChat from the app store. Ming-Chi Kuo, gives us a new piece of information about which the most affected would undoubtedly be the Cupertino company.

WeChat is one of those essential applications for users in China and as with WhatsApp here in our country, if its elimination takes place it would be a severe blow for Apple, which could stop selling so many iPhones. Kuo, explains in his report that it could be bad or more bad depending on the degree of prohibition of this app, and it is that they could prohibit it only in the United States or in all countries so there are two bad scenarios but one of them is much more bad.

Bans are never good

Of course, prohibitions are never good for anyone but logically when they come from trade problems between countries they are doubly bad. The point is that the analyst’s recommendation goes further and even advises that investments in apple supply companies be reduced such as Innotek, LG or Genius Electronic Optical for the risks associated with a WeChat ban. This is Kuo’s report:

WeChat has become a daily necessity in China, integrating functions such as messaging, payment, e-commerce, social media, news reading and productivity, if this is the case, we believe that Apple’s hardware product shipments will decline significantly.

We estimate that annual shipments of ‌iPhone‌ could be reduced by 25-30%, and annual shipments of other Apple hardware devices, including AirPods, iPad, Apple Watch and Mac, could be reduced between 15% and 25%.

Logically this is not official data, it will be necessary to see how this episode finally ends. Until next September 20 this prohibition would not come into force so it will be necessary to closely follow the movements of each other.

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