JPMorgan Stands by Apple with ‘Overweight’ Rating Despite Google Legal Battle

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JPMorgan is standing firm on its Overweight rating for Apple (NASDAQ:AAPL), even as the tech giant faces possible financial pressure from the ongoing antitrust

JPMorgan is standing firm on its Overweight rating for Apple (NASDAQ:AAPL), even as the tech giant faces possible financial pressure from the ongoing antitrust case involving Google (NASDAQ:GOOGL). Apple, valued at $3.19 trillion, continues to showcase strong financial health with a 46.6% gross margin.

Key Revenue Stream Under Scrutiny

At the center of this case is Google’s multi-billion-dollar payment to Apple for being the default search engine on its devices, a setup that runs through what are called Search Access Points (SAPs). JPMorgan’s report highlights that these payments represent a meaningful part of Apple’s revenue. Now, with the U.S. District Court asking both Google and the Department of Justice to propose remedies by August 2024, all eyes are on Judge Amit Mehta’s upcoming decision.

In the meantime, Apple is making moves elsewhere. It recently launched AppleCare One, a $19.99/month subscription that lets users protect up to three Apple devices. The plan includes 24/7 priority support and unlimited accidental damage repairs, with options to cover more devices at an additional cost.

What This Means for iPhone Users

Should Google be against Apple’s will to remove the default search browser upon enter-the-plane options, then one must appreciate choosing their own search engine in the course of device setup. While such an alteration may not seem very huge, it may in fact change the way millions search the Internet daily. To many users this may look like an insignificant change, but in the long run it might affect search behavior, apps suggestions, and even how Apple links in services such as Spotlight or Siri. This move may also provide a chance for Bing or DuckDuckGo to step up and grab some visibility on iPhones.

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