Kuo lays out optimistic and pessimistic eventualities relying on regardless of whether Apple is only necessary to take away WeChat from the App Store in the United States or if the ban would utilize to the App Store in all nations.
With all of the drama over President Donald Trump's threats to ban the global Chinese social network sensation TikTok, tech watchers in the USA have not spent just as much time considering what banning TenCent's WeChat might lead to aswell. "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.
That's not all. Since WeChat is imperative to the Chinese-Americans living in the United States for staying in touch with their folks back home, the WeChat ban could also affect iPhone sales in the country. The elimination could take place due to a modern government purchase aiming to ban USA transactions with WeChat and its guardian organization Tencent.
"Like TikTok, WeChat automatically captures vast swaths of information from its users".
According to Kuo, if WeChat is not subject to a global embargo and is rendered unavailable in the U.S. alone, iPhone sales could drop by only 3 percent to 6 percent. Both Google and Apple have removed apps from their marketplaces in certain countries in the past in response to foreign government requests, including TikTok and WeChat in India earlier this year, reported by CNBC. Offered the Chinese share of Apple's over-all sales, it looks additional probably to be referring to Chinese shipments. We estimate that global iPhone will decline by 3-6%.
"WeChat is a daily necessity for Chinese, integrating functions such as messaging, payments, e-commerce, social networking, news and productivity".
Without access to WeChat, consumers would likely balk at buying an iPhone in China and other parts of Asia.