On September 2, rumors began circulating that WeChat, China's most popular messaging app, may not be supported on the upcoming iPhone 16, and that the app would stop functioning once users upgraded to the iOS 18.2 system.
This sparked concerns that iPhone users would lose access to WeChat.
However, sources have since confirmed that these rumors are false.
Previously, there were reports that Apple had increased pressure on Tencent and ByteDance to close loopholes in their apps' in-game payment systems.
Apple has been seeking to prevent developers from directing users to external payment methods in order to avoid the company's 30% commission fee, often referred to as the 'Apple tax.'
The tech giant reportedly warned Tencent that if it didn't comply, WeChat might no longer receive updates on the Apple ecosystem.
In August, Tencent's management addressed this issue during an earnings call, explaining that there was a misunderstanding.
They stated that Tencent is not currently commercializing small games on iOS through in-app purchases, and that negotiations with Apple were ongoing.
On September 6, Bloomberg reported that Apple had approved WeChat for use on the iPhone 16, citing sources close to the matter.
A new WeChat update with added features – including enhanced Moments and live-streaming capabilities – has already been approved by Apple.
WeChat is a major driver of Tencent's business success; in 2023, Tencent generated RMB609 billion (approximately USD85.6 billion) in revenue, largely due to its WeChat platform.
Despite this, even Tencent has avoided turning WeChat into a paid app for fear of losing its massive user base.
Charging even a small annual fee could generate over RMB10 billion in revenue, but the potential loss of users would far outweigh the benefits.
Apple's insistence on its 30% commission fee for in-app purchases has been a point of contention, especially in markets like China.
With a population of 1.4 billion, China is a key market for Apple, and analysts suggest that the company may need to explore alternative ways to maintain loyalty while remaining profitable.
A rigid focus on fees could alienate users, putting future sales and market share at risk.
Recent data from the research institute RUNTO shows that while Apple's tablets remain the best-selling in China, their sales dipped by 21% year-on-year.
Market survey agency Canalys reported that in the second quarter of 2024, iPhone sales ranked second among all brands, indicating a downward trend in the Chinese market.
Without a more flexible approach, Apple risks continuing this slide in one of its most important markets.
As the discussions between Apple and Tencent continue, many will be watching closely to see if a solution can be reached to keep both the iPhone and WeChat firmly in Chinese consumers' hands.
To stay updated with the latest news and developments in China, follow our WeChat official account (if your iOS device allows it), ThatsGBA.
[Cover image by Billy Jiang/That's]
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