The upcoming US ban on apps like WeChat and TikTok could have a major impact on Apple product sales. Sales could drop by up to 30 percent.
WeChat and TikTok ban
On September 15, the United States wants to ban well-known Chinese apps such as WeChat and TikTok. The US argues that the use of such apps may pose a security risk and therefore the country is shielding the services from subsequent US citizens and businesses. During a video meeting with the White House, a dozen US companies have sued the government move, Gizchina knows.
We previously discussed the TikTok ban and the possible acquisition of the service by Microsoft, but it is WeChat’s ban in particular that affects US companies the most. WeChat is known as an alternative to WhatsApp, but in China, it is also the number one payment solution used by 1.2 billion people.
It also suggested the Android world fixed during our visit to the famous Chinese tech market of Shenzhen. If US companies in China can no longer receive payments via WeChat tomorrow, it could have a huge impact.
Falling Apple sales?
One of the potential victims is also Apple, because if the ban becomes a fact, it will no longer be able to offer the popular Chinese apps in its App Store, and thus there will be consequences for the sales of Apple devices.
Well-known Apple analyst Ming-Chi Kuo told AppleInsider that he takes into account two scenarios: one where Apple’s sales drop by 3 to 6 percent and one where the impact is greater with a drop of 25 to 30 percent. Unlike Android devices, Apple does not allow apps to be downloaded from alternative application stores or other sources.
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The United States has been in a trade war with China for some time, and the country has also been exercising sanctions on Huawei for more than a year. Quite contrary to that American policy, Schiphol last year announced a partnership with WeChat by, among other things, facilitating payments via the service at the airport.