JP Morgan stock market analyst Samik Chatterjee sees no lasting impact to Apple's shares if the company needs to make changes to App Store policies.
In some markets outside the U.S., Apple is being forced to make changes to its long-time policy that prevents developers from promoting third-party in-app payment platforms. This policy has enabled Apple to collect its 15% to 30% cut of in-app revenue generated by the App Store.
Reader apps are apps whose main functionality is to deliver content like magazines, newspapers, books, audio, music, or video. For example, streaming music service Spotify would be considered in that group. Spotify is one of the companies that complained the most about Apple's in-app payment policy going as far as not allowing subscribers to switch from the free ad-supported service to the premium paid service through the App Store.
Analyst says that Apple's shares will not be impacted in the long term by allowing alternative payment platforms for the App Storeby the Dutch Authority of Consumers and Markets and after 10 weeks at that level, Apple must now pay 50 million Euros each week .
The bottom line, Apple will not hurt its bottom line by allowing third-party payment platforms to handle transactions for these apps. Chatterjee says,"This suggests that in a worst case scenario where all reader app consumers circumvent App Store payments altogether, which we see as highly unlikely, the impact would be limited to 1-2% of EPS."
The translation? Apple should not fear having to give up its 15% to 30% cut on those apps and neither should investors.Get the most important news, reviews and deals in mobile tech delivered straight to your inbox
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