Rest assured that Tim Cook will never try playing Fortnite. The recent lawsuit against Epic Games has cost Apple (AAPL) an $84b loss in market value after a judge ruled that app developers could route players to alternative platforms to make payments — thus avoiding Apple’s 30% App store fees. The ruling targets the monopolistic nature of in-app purchases in the App Store and opens up the possibility of allowing third-party stores to operate in the iOS system.
The good news for Apple is that its shares were up 1.22% on Monday after dropping 3.3% on Friday. This fluctuation is emblematic of Apple’s share performance in the first half of 2021, which is neither bullish nor bearish. The excitement for the upcoming event that would announce new iPhone models has been countered by inflation concerns and higher interest rates (a no-no for tech companies), not allowing Apple’s stock to take flight.
why it matters
The ruling against Apple could eat up a significant portion of the company's revenue. This is an essential driver of growth for Apple, considering that "services" have brought in $17.5m so far this year (up 33% from last year).