1. Apple's legal setback affects App Store payment policies. 2. Analyst maintains Overweight rating despite EPS headwinds. 3. Zero-commission links could reduce Apple’s service revenue growth by 200 bps. 4. Adoption rates of link-out payments will dictate overall market impact. 5. Court ruling influences app developers positively, potentially enhancing their margins.
While there's a revenue headwind, it has already been priced in by investors. There are historical precedents, such as regulatory changes affecting companies like Microsoft, that initially caused concern but settled favorably over time.
The expected changes in revenue structure could impact AAPL's valuation significantly, especially in the eyes of long-term investors who consider sustained profitability a priority.
The appeal process could extend for over two years, impacting service revenues long-term, similar to past cases with prolonged litigation that restricted immediate revenue growth but led to eventual stability.