Shares of Apple Inc rose on Monday after plunging nearly $84 billion in market value last session on the back of a mixed ruling by a US judge in the iPhone maker’s battle with “Fortnite” game maker Epic Games.
Shares were up nearly 1 per cent ahead of the opening bell on Monday. On Friday, they closed with a fall of 3.3 percent.
The court issued a permanent injunction that would let players move players to an alternative platform to pay app developers, allowing them to avoid Apple’s 30 percent of App Store fees.
Analysts said that although the decision had the potential to eat into Apple’s services revenue, a major driver of growth in recent years, any hit was still unclear, would be differentiated over time and account for only a small portion of total revenue. shall be liable to be part of the
“In the end, I expect a 2 percent headwind in total revenue and a 4 percent increase in earnings,” said Gene Munster, managing partner at tech-focused VC firm Loop Ventures.
“After the first year of these changes, App Store growth will return to normal. Bottom line, this is a maximum one-year headwind and doesn’t change the big picture of where Apple is going over the next 5 years.”
Analysts at Wedbush also projected that in a worst-case scenario, Apple would lose about 3 percent of total revenue and close to a 1 percent revenue and profit headwind over the next few years, noting that most consumers continue to use Will keep App Store for in-app purchases.
On Sunday, Epic said in a legal filing that it plans to appeal a ruling in the antitrust case.
This News Originally From – The Epoch Times