Apple Approves WeChat Update for iPhone 16 Amid Ongoing Revenue-Sharing Negotiations

Apple has approved an update to WeChat for the upcoming iPhone 16, signaling a potential thaw in relations between the tech giant and Tencent, the Chinese company behind the massively popular messaging app. The development, reported by Bloomberg, comes as Tencent and Apple continue negotiations over revenue-sharing agreements for WeChat's mini-games ecosystem.

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The approval of the WeChat update for Apple's upcoming iPhone lineup is likely to quell speculation about a deteriorating relationship between the two companies, and suggests Apple is committed to maintaining WeChat's presence on its devices, given the app's critical importance in the Chinese market.

Tencent's chief strategy officer, James Mitchell, revealed during an earnings call that the company is in talks with Apple regarding a revenue-sharing deal. The negotiations center around allowing Tencent to accept payments in WeChat mini-games through Apple's payment system, potentially resolving a long-standing point of contention.

With nearly 1.4 billion users in China, WeChat serves as a ubiquitous platform for various services, including bill payments and ticket bookings. While many of these transactions are exempt from Apple's fees, in-app content and online entertainment, such as mini-games, remain subject to Apple's App Store policies.

The rise of mini-games within WeChat has led to developers seeking ways to monetize their creations by selling in-game items. Some have resorted to "steering" practices, guiding players to make payments outside of Apple's ecosystem to avoid fees and improve their profit margins. Apple has been pushing Tencent to close these loopholes, viewing them as violations of its ‌App Store‌ policies.

Apple has also warned ByteDance, the company behind TikTok, about in-app spending policies. However, these aggressive actions reportedly risk alienating content creators in a crucial market at a time when Apple's business practices are under increased global scrutiny.

Unlike in the US, Apple holds a smaller market share in China, failing to make the top five in smartphone sales last quarter. Meanwhile, Chinese companies like Tencent and ByteDance maintain significant control over online content, including games and video platforms. Apple's challenges in the Chinese market were underscored by a 6.5% decline in Greater China revenue for the June quarter.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tags: China, WeChat

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Top Rated Comments

JungeQuex Avatar
13 months ago

WeChat. Yet another way for the CCP to monitor dissent and 'crimes' against its state.
Lol, what do you care? Are you a Chinese citizen living in China?

I think we can drop the shtick that we’re concerned for the freedom of speech of people in an authoritarian state when your own federal government has a problematic relationship with American social media companies. See Meta and Zuckerberg’s recent statements for more details.
Score: 13 Votes (Like | Disagree)
nicho Avatar
13 months ago

Thanks but nope, would rather use Zuck's tools. At least he is a citizen of the US and company abides by the laws of the country. Same for Telegram which is probably putin's free trojan horse
A Chinese person would probably appreciate that Tencent is owned and run by citizens of China and that the company abides by the laws of the country.

Just saying.
Score: 11 Votes (Like | Disagree)
Mikey7c8 Avatar
13 months ago
It would be tough for Apple to play hard on this one. An app ban for WeChat (or Alipay) would result in their China iPhone sales dropping to 0.
Score: 11 Votes (Like | Disagree)
DELLsFan Avatar
13 months ago
Apple: "We value your privacy"

TenCent: "Here's $2B in revenue to allow your iPhone sales in China to thrive and enables our government to ensure kids aren't exposed to misinformation"

Apple: "WeChat is an amazing app perfect for all ages. See it prominently on the iPhone 16's home screen by default this fall!"
Score: 9 Votes (Like | Disagree)
Skyscraperfan Avatar
13 months ago
I'd rather be spied on by Russia or China than by the US, because the US can cause much more trouble. The US share that information with a lot of countries.
Score: 8 Votes (Like | Disagree)
Havalo Avatar
13 months ago
Tim: We care about our customers' privacy.
Reality:
[MEDIA=giphy]9HQRIttS5C4Za[/MEDIA]
Score: 8 Votes (Like | Disagree)