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