Price tag on WeChat could cost Apple dearly

Apple's response to widespread rumors that the new iPhone operating system might not continue supporting the popular app WeChat, or that the app might no longer be available on Apple Store, has done little to address people's concerns.

Apple said recently that it cannot comment on the rumors until Apple and Tencent talk it out.

The public's concerns are understandable given that according to market survey institution QuestMobile, iPhone users number over 200 million in China, while the number of active WeChat users exceeds 1 billion on the Chinese mainland alone. WeChat is a must-have app for most Chinese as it is a convenient service platform.

The large number of WeChat users is a key factor why so many businesses, be they official account holders or livestreamers, have made money on the platform. It's with the support of WeChat that Tencent earned 609 billion yuan ($85.6 billion) in business revenue in 2023.

However, even Tencent dare not turn WeChat into a paid app for fear of losing users. In some sense, collecting money from WeChat users would not be a profitable move because an imagined annual user fee of 10 yuan would only help it rake in 10 billion yuan on the mainland, which might be far less than the losses that might result if it became a paid app.

That's why Tencent has several times countered rumors to say it was not turning WeChat into a paid app.

That is a lesson Apple can learn. In the age of social media, users are the biggest resources and any software or hardware developer that has the biggest number of users wins.

Instead of insisting on its 30 percent "Apple tax" or other fee it can collect on such a popular app in a nation with a 1.4 billion population, Apple might need to think creatively to make money in other, more sustainable ways so that its users remain loyal.

Latest data from technological industry research institute RUNTO show that while Apple tablets remained the best selling in China, in July their sales registered a 21 percent year-on-year dip.

Market survey agency Canalys, too, found that in the second quarter of 2024, iPhone sales were ranked second among all brands, which shows a downward trend.

Unless Apple changes its attitude and approach, this downward trend might continue.