Analysts: Banning Wechat could hit Apple hard

Last week, US President Donald Trump issued two decrees stating that transactions with the companies behind the popular apps Tiktok and Wechat will be banned from 20 September, with reference to national security.

Now reports macrumors that the well-known analyst Ming-Chi Kuo took a closer look at what will happen to Apple’s sales if the company is forced to remove Wechat from the App Store.

Given that Wechat is not only used for messaging, but also for everything from dating to e-commerce, it will in principle be impossible for Apple to sell its products in China and the surrounding area if the app disappears.

In the worst case, sales of the Iphone risk falling by 25-30 percent, while sales of other products such as Ipad, Mac, Apple Watch and Airpods decrease by 15-25 percent.

At best, that is, if Wechat is only removed from the US App Store, sales of the Iphone will decrease by 3-6 percent while sales of other Apple products will decrease by less than 3 percent.

While both Microsoft and Twitter have expressed interest in getting their hands on Tiktok, at the time of writing there are no US companies interested in buying Wechat.