Donald Trump is continuing his campaign against China, in the last few days and weeks he has mainly been targeting apps from the Middle Kingdom. In addition to Tiktok, WeChat is also a thorn in the side of the American president. A possible ban could have massive implications for Apple.
At least that’s how analyst Ming Chi Kuo sees it. WeChat has 1.2 billion monthly users worldwide. The offer goes well beyond the classic messenger, it is also an important payment platform. Kuo believes a WeChat ban would cut iPhone sales by 25 to 30 percent. In addition, there is the sale of accessories such as AirPods or the Apple Watch, which is also expected to drop by 15 to 25 percent.
WeChat ban – Kuo versus MacRumors
The analyst explains to MacRumos as follows
As WeChat has become an everyday necessity in China, integrating features such as messaging, payment, e-commerce, social networking, news reading, and productivity, we believe that shipments of Apple hardware products in the Chinese market will decrease significantly. We estimate annual shipments of iPhones will decrease by 25-30% and annual shipments of other Apple hardware devices, including AirPods, iPad, Apple Watch, and Mac, will decrease by 15-25%.
He is currently advising investors to take precautions, especially with suppliers such as LG Innotek or Genius Electronic Optical.
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