USA vs China New Sanctions Could Significantly Slow iPhone Sales

In recent days, the WeChat chat app has also made headlines alongside TikTok. The reason was the same in both cases: a possible ban by the US government. Apple analyst Ming-Chi Kuo now explains the effects such a ban could have on iPhone sales numbers.

As MacRumors reports with reference to the analyst, a ban on the WeChat app from Apple’s App Store could cause worldwide iPhone sales to drop by 25-30%. But it could also have an impact on other Apple devices. Here, a ban could lead to a drop of 15 to 25%.

In his report, however, Mr Kuo makes a distinction between two different cases. The numbers mentioned above represent the worst-case scenario, if the app were to disappear completely from iPhone and iPad. Apple could also ban the app, which is extremely popular in China, only in the United States, while it would continue to be available in other regions as before.

The current wording of the sanctions prohibits any transaction between US companies and WeChat or the company behind the chat app, Tencent. However, observers expect these conditions to be changed.

If this were the case, Apple’s global iPhone shipments would only decline by 3-6%. The impact on other products would be less than 3%.

Although Apple hasn’t released concrete sales figures for the iPhone for some time, the Chinese market is extremely important to the California-based company. In the last quarter, for example, the revenue share from China was around 15%.

US sanctions against WeChat: possible conditions adjustments

If this were the case, Apple’s global iPhone shipments would only decline by 3-6%. The impact on other products would be less than 3%.

Although Apple hasn’t released concrete sales figures for the iPhone for some time, the Chinese market is extremely important to the California-based company. In the last quarter, for example, the revenue share from China was around 15%.

On August 6, 2020, the Trump administration announced a full-scale attack on TikTok and its parent company ByteDance as well as WeChat and Tencent. However, the new sanctions are not expected to come into effect until September 20, 2020.

Many details could still change by then. For example, the potential sale of TikTok to Microsoft could impact the executive orders of the US president.

Latest news

The Multi Talented Entrepreneur Ayub Ghauri is now a SocioOn Super Soul

Ayub Ghauri Ayub Ghauri is a name that speaks for itself, he is a brand himself and the name speaks for itself. Ayub Ghauri is...

Ayesha Jahazeb is now listed as Top 100 Super Souls of Pakistan

Ayesha Jahazeb is now listed as Top 100 Super Souls of Pakistan Ayesha Jahanzeb belongs to Lahore and has worked as the Anchorperson on the...

Ayesha Nasir becomes a Top100 Super Soul of Pakistan – Founder of ScaryAmmi

Ayesha Nasir was born in Lahore and she is now a SocioOn Super Soul. Early Life Being from a family of doctors, Ayesha Nasir parents also...

Muhammad Saleem Ahmed Ranjha is now a SocioOn Super Soul of Pakistan

Muhammad Saleem Ahmed Ranjha was born on 30th January 1961, in a small village in district Sargodha. Muhammad Saleem Ahmad Ranjha has diverse social networks,...

Related news

The Multi Talented Entrepreneur Ayub Ghauri is now a SocioOn Super Soul

Ayub Ghauri Ayub Ghauri is a name that speaks for itself, he is a brand himself and the name speaks for itself. Ayub Ghauri is...

Ayesha Jahazeb is now listed as Top 100 Super Souls of Pakistan

Ayesha Jahazeb is now listed as Top 100 Super Souls of Pakistan Ayesha Jahanzeb belongs to Lahore and has worked as the Anchorperson on the...

Ayesha Nasir becomes a Top100 Super Soul of Pakistan – Founder of ScaryAmmi

Ayesha Nasir was born in Lahore and she is now a SocioOn Super Soul. Early Life Being from a family of doctors, Ayesha Nasir parents also...

Muhammad Saleem Ahmed Ranjha is now a SocioOn Super Soul of Pakistan

Muhammad Saleem Ahmed Ranjha was born on 30th January 1961, in a small village in district Sargodha. Muhammad Saleem Ahmad Ranjha has diverse social networks,...