WeChat announced to be a ban on App Store

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  • WeChat will be removed from App Store,
  • Apple Inc. business operations will be affected,
  • Users who have already downloaded the app will continue to use WeChat.

Trump administration is planning to enact the ban and force removal of WeChat from the international App Store. The announcement of a potential ban on WeChat and TikTok by September 15 2020, these are applications used by people to chat with international friends, family, business partners.

Apple Inc. sales are likely to be affected if that ban is enacted. Apple could face up to a 10% decline in revenue if 75% of iPhone and iPad sales disappear. Apple’s business could be facing an unprecedented reorganization as those using WeChat domestically to chat with friends and business partners could then have to switch to either an alternative app or switch to Android OS if that remains unaffected.

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The executive order only targets WeChat, although it does mention aggressive action against Tencent, a developer’s (Tencent) standpoint, an app removed from the App Store will remain fully functional for current users. They will experience no interruption to services and will still be able to buy in-app purchases. So that’s a positive for users who already have WeChat downloaded, which looks to have soared since the ban was announced.

China is still a very important market for Apple products, it is the third-largest revenue driver and the second largest contributor to net income on an operating margin basis. The Apple Inc’s revenues in China and globally will be under threat,62.9% of revenues in China come from iPhone and iPad combined, that’s only putting $28.3 billion in net revenues at stake from new device sales, as services, home and wearables would not be affected by the ban.

The announcement of the banning of WeChat on App Store has been a threat to the Apple Inc and its business partners, the app developers as well as the iPhone and iPad users.It is likely to be a benefit for those who have already downloaded the latest WeChatversion.

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