Apple's iPhone shipments could fall 30% on WeChat ban - analyst

Aug. 10, 2020 1:00 PM ETApple Inc. (AAPL)AAPLBy: Brandy Betz, SA News Editor112 Comments
  • Noted Apple (NASDAQ:AAPL) analyst Ming-Chi Kuo thinks Apple's annual global iPhone shipments could fall 25-30% if the tech giant has to remove the WeChat app from App Stores.
  • Kuo's worst case scenario assumes a WeChat ban in all countries and not just the United States, where President Trump signed an executive order barring any transactions with WeChat.
  • A U.S.-only ban could cut 3-6% of iPhone shipments, according to Kuo's more optimistic scenario.
  • In other news, KeyBanc's internal data shows iPhone sales rose 53% in July on the prior month.
  • Analyst John Vinh notes that sell-through is down Y/Y compared to the pre-pandemic levels, but store inventories "remain at healthy levels" despite the retail store closures due to coronavirus spikes across the United States.
  • Vinh calls the trend "a strengthening recover in iPhone sales."
  • Apple shares are up 1.5% to $451.44 after a new Street-high target from Wedbush this morning, citing iPhone 12 optimism.
  • Previously: Trump signs orders targeting TikTok, WeChat; Tencent drops in Hong Kong (Aug. 06 2020)

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