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| IPhone sales in China may be affected by WeChat ban |
President (Donald Trump) has ordered US companies to ban the use of Chinese messaging apps (WeChat), which could affect Apple's iPhone sales in one of its major markets.
The order bans all transactions with WeChat, which prevents Apple from distributing WeChat to mobile devices via its app store.
WeChat is an essential app for digital life in China. One billion people use it for shopping, digital payments, email, web browsing, various forms of business and personal communications.
Many Chinese people do not use phone numbers and emails, and tourists from this country need to download the app and add money, otherwise they may not be able to pay for small purchases.
Without access to WeChat, consumers are likely to refuse to purchase iPhones in China and other parts of Asia.
In an online forum popular with stock market investors, users were asked whether Apple would remove the app from the store, and whether they would drop the iPhone or WeChat.
China accounts for about 20% of Apple's iPhone sales. Hence, removing WeChat from the app store would be a serious obstacle.
When Google Play Store was banned in China, people discovered other ways to install apps on Android devices running other smartphones around the world.
Trump's order could also cause a reaction in China, which would further damage Apple as many of Cupertino's manufacturing operations take place in China. If China were to target Apple's exports, it would affect its global operations. .
China may also restrict supplies of materials such as rare earth metals, which are the main components of the iPhone.
Trump's executive order goes into effect within 45 days, but many unresolved issues remain. A lot can happen from now on.
As we all know, after the accident, the president will return or make exceptions.
Apple can also unlock its operating system so that users can download apps without going through the app store. However, this is a major change for a company that has been keen to protect access to its ecosystem and charge $ 30. % For many applications. .
If the ban continues and Apple has no other solutions, Chinese consumers will likely turn to Huawei, which makes high-end smartphones domestically, in favor of the companies Trump is trying to pressure. She is for years. .