On September 2, reports started flowing that WeChat, China’s most popular messaging app, might not be supported on the upcoming iPhone 16, which the app would stop working as soon as users updated to the iOS 18.2 system.
This stimulated issues that iPhone users would lose access to WeChat.
Sources have actually given that verified that these reports are incorrect.
Formerly, there were reports that Apple had actually increased pressure on Tencent and ByteDance to close loopholes in their apps’ in-game payment systems.
Apple has actually been looking for to avoid designers from directing users to external payment approaches in order to prevent the business’s 30% commission cost, typically described as the ‘Apple tax.’
The tech giant apparently alerted Tencent that if it didn’t comply, WeChat may no longer get updates on the Apple community.
In August, Tencent’s management resolved this concern throughout a revenues call, discussing that there was a misconception.
They mentioned that Tencent is not presently advertising little video games on iOS through in-app purchases, which settlements with Apple were continuous.
On September 6, Bloomberg reported that Apple had actually authorized WeChat for usage on the iPhone 16, mentioning sources near to the matter.
A brand-new WeChat upgrade with included functions — consisting of boosted Moments and live-streaming abilities — has actually currently been authorized by Apple.
WeChat is a significant motorist of Tencent’s organization success; in 2023, Tencent created RMB609 billion (around USD85.6 billion) in profits, mainly due to its WeChat platform.
In spite of this, even Tencent has actually prevented turning WeChat into a paid app for worry of losing its huge user base.
Charging even a little yearly charge might produce over RMB10 billion in earnings, however the possible loss of users would far surpass the advantages.
Apple’s persistence on its 30% commission charge for in-app purchases has actually been a point of contention, specifically in markets like China.
With a population of 1.4 billion, China is an essential market for Apple, and experts recommend that the business might require to check out alternative methods to preserve commitment while staying successful.
A stiff concentrate on charges might push away users, putting future sales and market share at danger.
Current information from the research study institute RUNTO reveals that while Apple’s tablets stay the very popular in China, their sales dipped by 21% year-on-year.
Market research company Canalys reported that in the 2nd quarter of 2024, iPhone sales ranked 2nd amongst all brand names, suggesting a down pattern in the Chinese market.
Without a more versatile method, Apple threats continuing this slide in among its crucial markets.
As the conversations in between Apple and Tencent continue, numerous will be enjoying carefully to see if an option can be reached to keep both the iPhone and WeChat strongly in Chinese customers’ hands.
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