Tuesday, 11 August 2020 11:48

US order on WeChat could decimate iPhone sales: analyst Featured

US order on WeChat could decimate iPhone sales: analyst Pixabay

If Apple had to remove the WeChat app from its app store due to an executive order issued by US President Donald Trump, that would mean a loss of Chinese users who make up nearly a third of iPhone users around the globe, an influential Taiwanese stock analyst has warned.

Ming-Chi Kuo, who works with TFI Securities, told his clients in a newsletter dated 10 August that Chinese customers would have no use for an iPhone without the WeChat app, the Asia Times reported.

Veteran American tech journalist Robert X. Cringely has described WeChat this way: "Imagine Facebook, LinkedIn, PayPal, Venmo, Skype, Uber, Gmail and eBay all in a single application. That’s WeChat. It’s even a third-party application platform, so while US banks operate on the Internet, Chinese banks operate on WeChat."

US President Donald Trump is waging a campaign to eradicate all Chinese technology from the US and has taken aim at social media firm TikTok and WeChat.

The report said China accounted for 30% of iPhone sales and 15% of Apple’s total revenue as of the second quarter of 2020.

Kuo tracks Apple for TFI Securities, a part of the Taiwanese company China Development Financial which is a banking and brokerage firm with annual revenue of about US$7 billion (A$9.8 billion).

In his newsletter on Monday, Kuo wrote: “Because WeChat has become a daily necessity in China, integrating functions such as messaging, payment, e-commerce, social networking, news reading, and productivity, if this is the case, we believe that Apple’s hardware product shipments in the Chinese market will decline significantly.

"We estimate that the annual ‌iPhone‌ shipments will be revised down by 25%-30%, and the annual shipments of other Apple hardware devices, including AirPods, iPad, Apple Watch and Mac, will be revised down by 15%–25%.”

He advised his clients to get rid of shares of Apple and companies in its supply chain like LG Innotek and Genius Electronic Optical.

Apple stock, which stood at US$455 on the NYSE before Kuo's recommendations appeared on news wires, fell to US$442 by 11am.

Tencent, which owns WeChat, saw its market capitalisation fall by a tenth on Friday and Monday trading in Hong Kong after Trump issued an executive order banning all US transactions on the app.

The report said it was not clear whether Trump's order would make it mandatory for Apple to remove the WeChat app from its app store. Kuo said his 30% sales drop projection was a worst-case outcome.

Read 1897 times

Please join our community here and become a VIP.

Subscribe to ITWIRE UPDATE Newsletter here
JOIN our iTWireTV our YouTube Community here


The past year has seen a meteoric rise in ransomware incidents worldwide.

Over the past 12 months, SonicWall Capture Labs threat researchers have diligently tracked the meteoric rise in cyberattacks, as well as trends and activity across all threat vectors, including:

Encrypted threats
IoT malware
Zero-day attacks and more

These exclusive findings are now available via the 2022 SonicWall Cyber Threat Report, which ensures SMBs, government agencies, enterprises and other organizations have the actionable threat intelligence needed to combat the rising tide of cybercrime.

Click the button below to get the report.



It's all about Webinars.

Marketing budgets are now focused on Webinars combined with Lead Generation.

If you wish to promote a Webinar we recommend at least a 3 to 4 week campaign prior to your event.

The iTWire campaign will include extensive adverts on our News Site itwire.com and prominent Newsletter promotion https://itwire.com/itwire-update.html and Promotional News & Editorial. Plus a video interview of the key speaker on iTWire TV https://www.youtube.com/c/iTWireTV/videos which will be used in Promotional Posts on the iTWire Home Page.

Now we are coming out of Lockdown iTWire will be focussed to assisting with your webinars and campaigns and assistance via part payments and extended terms, a Webinar Business Booster Pack and other supportive programs. We can also create your adverts and written content plus coordinate your video interview.

We look forward to discussing your campaign goals with you. Please click the button below.


Sam Varghese

Sam Varghese has been writing for iTWire since 2006, a year after the site came into existence. For nearly a decade thereafter, he wrote mostly about free and open source software, based on his own use of this genre of software. Since May 2016, he has been writing across many areas of technology. He has been a journalist for nearly 40 years in India (Indian Express and Deccan Herald), the UAE (Khaleej Times) and Australia (Daily Commercial News (now defunct) and The Age). His personal blog is titled Irregular Expression.

Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Interviews

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News