may be Go down Apple’s annual global sales of iPhones in the worst-case scenario are between 25 and 30 percent if the company was forced to remove WeChat from its app store around the world.
This data comes according to a new research note published by reliable analyst Ming-Chi Kuo, and the removal may occur due to President Trump’s executive order that aims to ban US transactions with WeChat and the parent company Tencent.
The Trump administration is trying to block Chinese apps that allegedly pose a risk to US consumer data in the hands of the Chinese government.
The analyst puts up optimistic and pessimistic scenarios depending on whether Apple is only required to remove WeChat from the app store in the US or if the ban applies to the app store متجر in all countries.
WeChat is very popular with Chinese mobile device users, as it basically acts as its platform for many Android and iOS users.
The app is also widely used around the world and has more than 1.2 billion monthly active users, and Kuo says: A global ban on WeChat on the Apple App Store would be devastating as a result.
Given that (WeChat) is critical to Chinese users, as it integrates communications, payments, e-commerce, social software, news reading and productivity functions, Kuo believes this move will lead to reduced iPhone sales in the Chinese market.
The analyst estimates that global iPhone shipments will decrease by between 25 and 30 percent, while global shipments of other Apple products, including AirPods, iPad, Apple Watch and Mac, will decrease by between 15 and 25 percent.
In the optimistic scenario in which WeChat is removed from the US Apple App Store only, Kuo expects global iPhone shipments to be affected by between 3 and 6 percent, with other Apple products affected by less than 3 percent.
Apple does not separate iPhone shipments by region, but China generally accounted for just over 15 percent of Apple’s total revenue during the June quarter, making it a significant part of the company’s business.
Kuo advises investors to reduce their stakes in shares of Apple supply chain companies, such as LG Innotek, due to the risks of the WeChat ban.