Apple's Revenue Unlikely To Be Impacted By EU Regulatory Changes, Says JP Morgan
Portfolio Pulse from Ananya Gairola
JP Morgan Chase & Co. believes that Apple Inc.'s revenue will not be significantly impacted by the EU's new Digital Markets Act, despite Apple reducing its App Store commission and introducing a new fee. The EU accounts for only 6% of Apple's App Store revenue, and the new fifty-cent fee is expected to offset the commission cut. These changes are part of Apple's compliance with EU competition law and will take effect with the release of iOS 17.4.
January 26, 2024 | 3:42 am
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Apple's App Store revenue is not expected to be significantly affected by the EU's new regulations, as the EU represents a small portion of its total App Store revenue and the new fee structure could mitigate the impact of reduced commissions.
The EU contributes to a minor portion of Apple's App Store revenue, and JP Morgan's analysis suggests that the new fee structure will likely balance the reduced commission rates. Therefore, the financial impact on Apple is expected to be limited in the short term.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 80
NEUTRAL IMPACT
JP Morgan Chase & Co. provided analysis on the impact of EU regulatory changes on Apple's revenue, indicating a belief that there will be no significant effect.
JP Morgan's role in this context is as an analyst providing insights into Apple's financial outlook. The news does not directly impact JP Morgan's financials but reflects the company's research capabilities.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30