Apple ( NASDAQ:AAPL )
Morgan Stanley said on Wednesday that if Apple ( NASDAQ:AAPL ) were change its policy and start allowing third-party app stores on iPhones and iPads to comply with specific requirements in the European Union, the change would have “more bark than bite” and have minimal effect on the tech giant.
The analyst Erik Woodring, who has an overweight rating and a $175 price target on Apple stock, said that the App Store is “overwhelmingly” preferred by customers. He also noted that the additional work required to install side-loaded programs has led to “limited” uptake on other platforms.
According to Woodring, if Apple (AAPL) did this, its sales would drop by 1%, and its profits per share would drop by 2.5%.
In a message to investors, Woodring said, “We expect low risk to App Store sales from more App Store competition on iOS.” He also noted that Apple’s probable appeasement of EU authorities might lift a long-standing cloud off Apple’s stock.
On Tuesday, it was reported that Apple (AAPL) employees in software engineering and services were working to open up the company’s platforms in a move that could allow users to download third-party software outside of the App Store and allow businesses to avoid paying Apple (AAPL) commission rates of up to 30%.
This policy change would be a dramatic about-face for Apple (AAPL), which has been very critical of t...
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