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

[MacRumors]

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.

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.

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

 

[DELLsFan]

WeChat. Yet another way for the CCP to monitor dissent and 'crimes' against its state.

 

[Mikey7c8]

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.

 

[JungeQuex]

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.

 

[DELLsFan]

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!"

 

[uacd]

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

 

[HouseLannister]

Apple (scratches chin): Ya know, it would be a shame if something were to happen to your app.

 

[Skyscraperfan]

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.

 

[JungeQuex]

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

Right, the same Zuck who just admitted to being contracted by the Federal Government to censor speech in a letter to Congress. Good choice!

 

[JungeQuex]

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.

Yes, but whatever will you do if you are unable to openly criticize DA SEE SEE PEE? You might have nothing happen to you at all!

 

[Havalo]

Tim: We care about our customers' privacy.
Reality:

 

[wanha]

So TenCent doesn't want to pay a share of its iOS revenues to Apple, but all merchants on WeChat still need to pay a share of all revenue to TenCent, yes?

Sounds like something the EU would mandate.

 

[nicho]

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.

 

[wanha]

Tim: We care about our customers' privacy.
Reality:

What would happen if Apple went HARDCORE on privacy in China?

Step 1: China would kick Apple out faster than they could say "wut?"

Step 2: Apple shareholders would vote Tim out and replace him with someone who won't sacrifice billions and billions for what shareholders see as an ideal.

In other words, it's easy to think that this is a simple tradeoff that Apple just went for money out of greed.

In reality, it's a complex issue that where decisions don't get made in a vacuum.

 

[CrysisDeu]

WeChat. Yet another way for the CCP to monitor dissent and 'crimes' against its state.

Wow what a timely comment considering Telegram founder was recently arrested

 

[CrysisDeu]

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

But if you live in the US, Russia and China can’t do anything to you in real life. On the other hand you have FBI and CIA who can definitely find you

 

[davide_eu]

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.

You know a$$le is weak with strong players, and strong with weak players...

 

[lordhamster]

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.

Exactly. The US and European governments and companies spy on us and are quite eager to censor information in the name of protecting us from “misinformation.” They do so less prominently than China of course but they do it. I’m not really worried about the Chinese government because they can’t do jack to me. Besides, if the Chinese government is interested in my private information, they’ll just buy it from Zuckerberg or Google.

I think privacy is a fundamental human right, don’t get me wrong… but if I’m forced into a situation where a state is spying on me…I’d rather it not be my own.

 

[wanha]

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.

That's like saying you can't care about global warming if you live in a cool climate that is relatively safe from the effects of global warming

 

[contacos]

Exactly. The US and European governments and companies spy on us and are quite eager to censor information in the name of protecting us from “misinformation.” They do so less prominently than China of course but they do it. I’m not really worried about the Chinese government because they can’t do jack to me. Besides, if the Chinese government is interested in my private information, they’ll just buy it from Zuckerberg or Google.

I think privacy is a fundamental human right, don’t get me wrong… but if I’m forced into a situation where a state is spying on me…I’d rather it not be my own.

The difference is on one side your content may be deleted, on the other side you end up in prison for 10+ years

 

[uacd]

But if you live in the US, Russia and China can’t do anything to you in real life. On the other hand you have FBI and CIA who can definitely find you

For now they can't do anything. A year or two and some "Telegram leak" will make a lot of people scary about their data and privacy. As for the FBI, CIA and others - well I don't sell drugs or do anything illicit, why should I care then? Unlike Russia and China they (US agencies) cannot arrest me for supporting either party or candidate or voicing my opinions on some rather controversial issues

 

[toobravetosave]

don’t worry apple you can still abuse american consumers

 

[JungeQuex]

That's like saying you can't care about global warming if you live in a cool climate that is relatively safe from the effects of global warming

No, I'm merely pointing out that you people are the constant pot calling the kettle black. Just sit down and be quiet until your own house is cleaned up before you start whining about the state of your neighbor's house.

 

[ilikewhey]

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

you sure about that? zuck and co had broken countless amount of privacy violations with almost zero recourse even after congressional hearings.

 

[chmania]

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.

What can Apple do, when it has to make its products in China? Of course, Apple can assemble its products in other countries, but the major parts and the tech is coming from China. How can one not approve?