Tuesday, June 26, 2018

APPLE AND WECHAT AGREEING TO RESTORE ‘TIPPING’ FEATURE

Since the falling out of Apple and Wechat on “Tipping Issue”, it is now being reported that the two companies have found some common ground. Apple is being reported to have released a new policy for “tipping” and attempted to recognize the tips as in-app purchasing, in an attempt to resolve the issue with Wechat, which became the bone of contention for them last year. WeChat, which collects services within its app, is a famous messaging and calling app in China. WeChat always encourages its users to tip, but Apple wanted 30 percent cut of the revenue.
WeChat not appreciating the demand of Apple in response had disabled the feature.
According to the Wall Street Journal reports, both companies now have agreed over the tips. It is not uncommon for companies like Apple to have faced a difficult time in understanding China-specific features. It is only after some time that they seem to share a mutual understanding of the Chinese market and the Chinese partner companies. The same is true for Apple which is now on the common ground with Wechat and working towards resolving the policy issues.
It is still unclear if Apple will deduct anything from tips in future. In September iPhone makers made some changes in the app stores rules. It also now allows users to gift money to each other for free.
No doubt that Apple’s deal with Wechat can play an important role in Apple’s growth in China. China has emerged as a big software and services market for apple. While there is a dip in revenue and market share in China, Still apple recorded good revenue in the fourth quarter of 2016.

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