A recent executive order issued in the United States regarding China-based WeChat could significantly impact iPhone sales, according to analyst Ming-Chi Kuo.
The Trump administration issued an executive order banning U.S. companies from having a business relationship with WeChat, and if the order is fully implemented it could have ramifications for Apple.
WeChat is considered an important app in the Chinese market, and it was removed from the App Store and no longer available on iOS, this could cause iPhone sales to decrease by 30 percent.
It’s important to understand that WeChat isn’t just a messaging service for Chinese users, since it’s used for payments, news, online shopping and social networking.
The order bans transactions between U.S. firms and WeChat, which means that Apple would be forced to remove the app from the App Store in all countries in 45 days. However, the Trump administration is expected to weaken the terms of the order before then.
If the order only requires Apple to remove the app in the U.S., then the impact on iPhone sales would be less notable and would likely only be around 3-6 percent of a decline.
This comes as the Trump administration is attempting to force Chinese video sharing app TikTok to sell off its U.S. operations or face a ban in the country.