Apple's Future In Search: JPMorgan Evaluates Options After Google's Legal Setback
Portfolio Pulse from Surbhi Jain
A recent ruling against Alphabet Inc (GOOGL) identified its search agreements with Apple Inc (AAPL) as monopolistic. JPMorgan analyst Samik Chatterjee outlines three options for Apple: waiting for Google's appeal, entering non-exclusive revenue-sharing agreements, or developing its own search engine. The ruling could significantly impact Apple's revenue from Google, which was $20 billion in 2022 and likely $24 billion in 2024. Alternatives like Microsoft's Bing or DuckDuckGo offer lower economic benefits.

August 06, 2024 | 12:27 pm
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NEGATIVE IMPACT
Apple faces significant revenue impact due to a ruling against Google's search agreements. Options include waiting for Google's appeal, non-exclusive revenue-sharing, or developing its own search engine.
The ruling against Google's search agreements directly impacts Apple's revenue stream from Google, which was $20 billion in 2022. The potential changes could lead to lower revenue or higher expenses for Apple.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
A ruling against Google's search agreements with Apple could lead to significant changes in its business practices and revenue-sharing agreements.
The ruling against Google's search agreements with Apple could force Google to alter its business practices, potentially impacting its revenue and market position.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Microsoft's Bing is considered as an alternative to Google's search engine for Apple, but it offers lower economic benefits.
While Microsoft's Bing is considered as an alternative to Google's search engine for Apple, it offers lower economic benefits, making it a less likely option.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50