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Barclays: Apple (AAPL.US) may suffer from "collateral damage" in the US Department of Justice's antitrust case against Google (GOOGL.US)

Market IntelWednesday, Nov 27, 2024 2:00 am ET

1min read

Barclays said that if the US Department of Justice's antitrust lawsuit against Google (GOOGL.US) proceeds as it is, Apple (AAPL.US) could ultimately be hit by "collateral damage." The bank's analyst Tim Long said: "While Apple is not directly embroiled in the legal dispute between Google and the US Department of Justice, the outcome could have significant implications for its business model." The analyst noted that the revenue from Google's payments to Apple for traffic acquisition costs could be affected, which is a big issue for Apple as it is believed to account for around 15 per cent of its operating profit. The analyst rates Apple "underweight" with a target price of $184.

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skilliard7

11/27

$AAPL Apple is facing significant challenges in releasing AI capabilities on iPhones in China, according to the FT. Apple is struggling to get its AI models approved for iPhones and other products in the Chinese market, with a high-ranking Beijing official warning that foreign companies attempting to do so without local partnerships will face a "difficult and lengthy process," as reported by Ryan McMorrow, Michael Acton, and Eleanor Olcott from the Financial Times. CEO Tim Cook recently visited China for the third time this year as Apple attempts to navigate the country's complex regulatory environment. Additionally, Apple is considering developing its own large language models within China, as revealed to the Times by two individuals familiar with the matter.