WeChat ban may make Apple pay a heavy price: Report
By MYBRANDBOOK
According to a news report, the US ban on WeChat, owned by the Chinese company Tencent Holdings Ltd can impact Apple business up to worth $28 billion. Apart from the ban order on Chinese short-video-making app TikTok, US President Donald Trump also issued another similarly-worded executive order against WeChat.
“The WeChat ban could impact up to $28 billion in iPhone/iPad sales in China as well as related impacts to Service revenue,” reports Seeking Alpha.
China is Apple’s third largest market where it amassed about $44 billion in net sales in 2019.
The ban puts the Chinese market for Apple devices, primarily iPhones and iPads, at high risk if a full crackdown occurs.
Apple, along with Ford, Walmart and Disney has called on the Trump administration to end the executive order seeking the ban of WeChat. China is still a very important market for Apple products, as the third largest revenue driver and the second largest contributor to net income on an operating margin basis.
“If 75 percent of iPhone/iPad sales in China vanish because of this (ban), that estimates a decline of $21 billion in net revenues aside from a related drawdown in services, which could add $4-5 billion to that decline estimate,” said the report.
If 50 percent of iPhone/iPad sales vanish, that would estimate a decline of $14 billion in net revenues, and services associated could add another $2-3 billion to that decline.
According to famed analyst Ming-Chi Kuo, the executive order to ban WeChat from the Apple App Store could lead to 25-30 per cent drop in iPhone shipments in the Chinese market.
At least 95 per cent of the 1.2 million Chinese Apple users said that they would rather switch to an Android device than use an iPhone without WeChat.
China, with its population of 1.44 billion people, accounted for about 15 percent of Apple’s total June quarter revenue.
The government of India intends to construct a single portal f
A single portal will be launched by the Indian government to list all of it...
OpenAI offers GPT-4o, a faster model available to all users at
GPT-4o, a faster and more sophisticated AI model, is made available to all...
Paytm brings UPI Lite Wallet for low-value transactions
Paytm’s parent company One97 Communications (OCL) is emphasizing upon UP...
BHIM to join e-commerce, competing with PhonePe and Google Pay
The government-supported payment software BHIM is getting ready to join t...
SAFE SECURITY SERVICES PVT. LTD.
AMARA RAJA POWER SYSTEMS LTD.
MICROTEK INTERNATIONAL PVT. LTD.
RAMCO SYSTEMS Ltd.
Technology Icons Of India 2023: Natarajan Chandrasekaran
Natarajan Chandrasekaran is the Chairman of the Board of Tata Sons, th...
Technology Icons Of India 2023: Vijay Shekhar Sharma
Vijay Shekhar Sharma is an Indian technology entrepreneur and billiona...
Technology Icons Of India 2023: Roshni Nadar Malhotra
Roshni Nadar Malhotra is an Indian billionaire businesswoman and the c...
C-DOT enabling India in indigenous design, development and production of telecom technologies
An autonomous telecom R&D centre of Government of India, Center of Dev...
C-DAC keeps India ahead in IT & Electronics R&D space
Centre for Development of Advanced Computing (C-DAC) is the premier R&...
HPCL is transforming the energy landscape, across the nation and beyond
HPCL is world-class energy company known for caring and delighting the...
RAH INFOTECH
RAH Infotech is India’s fastest growing technology value added dist...
ACCERON INFOSOL PVT. LTD.
It is a leading value added distributor in the IT security space and h...
SONATA INFORMATION TECHNOLOGY LIMITED
Sonata Software Limited is a leading Modernization engineering company...