WeChat ban in the US could impact the sales of iPhone and accessories globally

Ban on Chinese Apps and software has been a global phenomenon and Apple seems to be getting the maximum impact from the same. Recently, the US government decided to ban Chinese apps ByteDance and Tecenet from doing business with American companies. As per the government, it poses a big threat as data of American consumers could land into the hands of the Chinese government. The US government has also banned apps like TikTok, where rumors started building up that Microsoft is in talks with Tiktok to buy their US operation.

As per the recent details from Apple analyst Ming-Chi Kuo, the outcomes from this ban could lead to a large impact on the phone exports and sales of Apple iPhone. With the worst-case scenario predicted for Apple after the ban, they could see a drop of 25-30% in the sales of the iPhone and a drop of 15-20% in the sale of Apple accessories. A ban on Tencent would lead Apple to remove WeChat from their App store, which is one of the primary apps to be used in China. WeChat is not only used for communication, but also for shopping, payments, news, social network, and various outer productivity tools.

With the app on the App Store, the sales of Apple iPhone would drastically drop in the Chinese market. With the decline of the iPhone, the company would automatically see a drop in the sale of accessories as well. However, in the US, the ban of WeChat would only lead to a 5-6 % decrease in the sales of the iPhone and a 3% decrease in the sale of accessories.


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