The order would prevent all WeChat transactions, which prohibits Apple from sending WeChat via its App Store to mobile devices. WeChat is key to Chinese digital life.
This app is designed for one billion people to shop, send payments and e-mail, browse the web and communicate in all forms. Many Chinese are not using phone or email numbers. Visitors to the country need to download the app and charge it with money or risk that even small purchases can not be paid for.
Without access to WeChat, consumers in China and other parts of Asia would probably resist purchasing an iPhone. A popular online forum for shareholders asked users if they were going to abandon their iPhones or wechaat if Apple removed the app. They decided to leave their phones at 20-1.
Around 20 percent of Apple 's sales are made in China by iPhone, so pulling WeChat off App Store would result in low sale rates of Iphones in china
Although the Google App Store in China is prohibited, there are alternate ways to install Android apps that power smartphones in the rest of the world. A Apple 's spokesman did not send a comment request.
The order by Trump may also lead China to retaliate, and further damage Apple. Much of Cupertino's production in China is carried out by California-based companies, and if the country aims to export Apple to the world, Srinivasan said. China may also limit the supply of materials that are key ingredients of iPhone such as rare earth metals.
The order by Trump may also lead China to retaliate, and further damage Apple. Much of Cupertino's production in China is carried out by California-based companies, and if the country aims to export Apple to the world. China may also limit the supply of materials that are key ingredients of iPhone such as rare earth metals.
After closing at a high of $450.85 Thursday, Apple shares fell by 1 percent on Friday in New York. This year, Apple gained 53%.
The Executive Order of Trump will come into force in 45 days, but many outstanding questions may arise from time to time.
The President has been able to retreat or exempt his statements after the fact.
Apple can also open its operating system to download applications without passing through the App Store. This is a major change for a company that has always carefully maintained its ecosystem access and is charged 30 percent of many applications.
Should the ban continue and Apple does not have a workaround, Chinese users who have the money to buy an iPhone will probably be turning to the smartphone maker of Huawei, home-grown in China. This could eventually help Trump to squeeze out the order for years. The order could then benefit a company.