This could be a nightmare for Apple…
Apple is in big trouble, and that trouble could cost them $45 billion, not to mention bring down the worldwide iPhone sales by a whopping 30%. Yeah! sounds like a serious matter, well… IT IS.
Until now, you guys would’ve known that the US is considering a ban on Chinese apps like WeChat, which is the single most important app in China with more than a billion active users.
Well… talking of WeChat, let’s get some facts on WeChat.
The majority of Chinese celebrities have WeChat Official Account, just like our Instagram has. Almost all the enterprises, be it local or international, use WeChat Official account for business, and it includes WeChat Pay in the app, which is used to make payments, book train tickets, and so on. So, it’s not just an app; it’s quite an essential element of China people’s lives.
In a survey on Weibo, more than 1.5M responses clear that 95% of Chinese iPhone owners would switch to different smartphone brands rather than ditching WeChat. Now, you may picture the consequences of the removal of WeChat from AppStore.
Coming to Apple, they are placed in a rough situation, and I don’t think they can do anything about it other than persuading Trump to not make it happen which isn’t gonna happen. Here’s why.
Apple contacted Trump Administration stating that the consequences from this ban could be “severe”. But from his response, it looks like he doesn't care at all.
Analyst Ming-Chi Kuo tells that iPhone sales will drop by a huge 30% worldwide as a result of this ban, Apple sold over 230M iPhones last year so that’s about 70M drop in sales. Not to mention other products like Apple Watches, iPads, AirPods may fall 15% — 20%.
This is indeed a nightmare for Apple as Trump’s one execution order could make a huge dent on their revenue considering China is the most important international market for Apple worth $44B.
Well, that’s it. Do respond whatcha think?
Thank You for reading.
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