Is the success story of Apple shares in acute danger? Financial experts analyze lawsuit over illegal monopolization.

Is the success story of Apple shares in acute danger? Financial experts analyze lawsuit over illegal monopolization.

What exactly is it about?

On March 21, 2024, the Justice Department filed a lawsuit against Apple. The technology giant is accused of building an illegal smartphone monopoly that excludes competitors and stifles innovation.

Assistant Attorney General Lisa Monaco says the lawsuit aims to stop Apple from undermining competing technologies with in-house apps. Restrictions on access to contactless payments and the exchange of encrypted messages are examples of this.

What could lie ahead for Apple?

The lawsuit aims to break Apple's closed platform, which could prevent the company from developing expected technology. This could weaken customer loyalty as Apple products are valued for their seamless collaboration and security features. A successful lawsuit could potentially have significant impact.

Stock with uncertainties

Apple generated over $380 billion in revenue last year, with a net profit of $97 billion. The lawsuit could create uncertainty, which investors typically don't like. The stock has fallen 8% since the beginning of the year and is currently at $172.42. A possible ruling is not expected before 2026, which could lead to further uncertainty.

Experts predict sales of $412 billion and net profit of $107 billion for Apple next year. A downward spiral is not necessarily expected, although there could be challenges in the near future. However, no acute danger is currently seen.