With an annual profit of 85 billion, Apple s services business faces new challenges in 2024

Mondo Technology Updated on 2024-01-31

IT Home reported on January 2 that the authorities of the United States and the European Union plan to develop and implement a series of regulatory decisions in the coming monthsAs a result, Apple will face legal liquidation in 2024, which will affect the service business with an annual revenue of 85 billion US dollars (note from IT House: currently about 605.2 billion yuan).

According to the report, Google paid Apple more than $26 billion in 2021 to make Google Search the default search engine for Apple devices.

According to independent analyst Eric Seufert, these payments account for a quarter of Apple's annual service division's revenue.

If Google loses the lawsuit, it means that Google will stop paying these fees to Apple, which will have a significant financial impact.

The U.S., the European Union, and Japan have all stepped up scrutiny of Apple's App Store, and Apple has even been forced to make the decision to allow third-party apps to run in order to comply with the EU's new rules.

If the adjustment goes into effect, it will inevitably affect the revenue of the App Store, and the 30% commission will not be effectively implemented.

Jonathan Kanter, head of the U.S. Department of Justice's antitrust division, has been clear about filing lawsuits against large U.S. companies.

His department has been investigating Apple's App Store policies for years and is now "on fire" with the potential for a lawsuit against Apple.

For investors, the uncertainty surrounding these legal and regulatory actions poses a challenge in assessing the potential risks to Apple's business.

Gene Munster, managing partner at Deepwater Asset Management, believes investors should take these developments seriously.

The Supreme Court will review a case related to App Store policies, which will add to a series of challenges facing Apple.

As long as users continue to be willing to pay for services, Apple will further expand and promote the service business. Recently, Apple has increased subscriptions across the board** in Canada and beyond.

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