Apple should experience minimal financial impact from App Store changes – analysts

Apple’s recent changes to the App Store in response to regulatory and legal pressure will have minimal financial impact on the company, analysts say.

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Patrick Seitz for Investor’s Business Daily:

Morgan Stanley analyst Katy Huberty estimates that the App Store changes announced over the last couple of weeks would lower Apple’s earnings per share by 1% to 2% in a worst-case scenario.

“We see the recent App Store announcements as having minimal financial impact to Apple,” she said in a note to clients Wednesday. However, Huberty did lower her revenue forecast for the App Store, citing slower near-term engagement. But stronger advertising revenue largely will offset that trend, she said…

Even if consumers are offered alternate payment methods for digital content, they’re likely to stick with Apple’s App Store services out of convenience, analysts say. “Our belief is the vast majority of users will stay within the Apple payment and app ecosystem because it’s more secure and easier,” Loup Ventures managing partner Gene Munster and analyst David Stokman said in a blog post.

MacDailyNews Take: Of course, these are minor changes in the grand scheme of things. In related news, U.S. lawmakers are barreling ahead with legislation to change the way Apple Inc. runs its App Store, unconvinced by the company’s recent moves to address antitrust complaints from developers and regulators around the world.


    1. Yoji, you are an optimist. The impact will come from all of us waking up to realize Tim Cook, Steve Jobs, et al have been gaslighting us all these years about customer privacy. Once they admitted to even planning to add warrant-less search and seizure of our personal information, they lost millions of us permanently.

      They tried to cover their betrayal of trust as an act to “protect children”. Now do all the children whose phones you want to subject to warrantless searches Tim. Is that protecting them too? SMH

      1. I never trusted Cook, never. But in Jobs’s era, he at least gave us fuzzy dream, admiration, enjoyment and expectation of next big thing etc etc :-). Those days are gone. Now, nothing but greed, deception, price jacking up, wherever money leads to….
        Not too long ago, Tim was openly sticking to iPad (or iOS devices) and never budged (playing to be a great tech prophet as Jobs used to be)….which led to a long “pipeline” blank…until consumer uproars made him actually admit, in his own words, that he was wrong. Maybe Steve did concoct something naughty but I trust he was always trying to please Apple’s customers. No comparison.

  1. “Our belief is the vast majority of users will stay within the Apple payment and app ecosystem because it’s more secure and easier,”

    Let’s definitely, at least, get other stores, but Munster’s quote sounds a lot like the charges against MS in their anti-trust trial. And that was only about Internet Explorer having unfair advantage.

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