WhatsApp's Popularity Surges In US — Giving iMessage A Run For Its Money?
Portfolio Pulse from Ananya Gairola
WhatsApp, owned by Meta Platforms Inc. (META), is experiencing a surge in its U.S. user base, challenging Apple Inc.'s (AAPL) iMessage. WhatsApp's daily active users in the U.S. grew by 9%, with downloads increasing by 5% from the previous year. The app's cross-platform capabilities and business solutions are attracting more users, with an 80% increase in daily business users in 2023. Despite this growth, it's uncertain if WhatsApp can surpass iMessage, especially with Apple's planned RCS support for iOS, which may improve iPhone to Android messaging.
January 17, 2024 | 7:02 am
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NEUTRAL IMPACT
Apple Inc.'s iMessage faces increased competition from WhatsApp, but upcoming RCS support for iOS could retain users and maintain its messaging dominance.
Apple's iMessage is experiencing competitive pressure from WhatsApp's growing popularity. However, the short-term impact on AAPL may be neutral due to the anticipated RCS support for iOS, which could enhance iPhone to Android messaging and help retain users within the Apple ecosystem.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Meta Platforms Inc.'s WhatsApp shows significant user growth in the U.S., which could lead to increased engagement and revenue from its business solutions.
The growth in WhatsApp's user base, particularly in the U.S., suggests a positive trend for Meta's engagement metrics and potential revenue, especially from business solutions. The increase in daily business users by 80% is a strong indicator of the platform's growing importance. However, the impact may be moderated by competition from Apple's iMessage and the upcoming RCS support for iOS.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 90