On Tuesday, Apple (AAPL) will release the iPhone 15, leading it to open higher despite a disastrous previous session.
Its stock price rose by 0.35% to $178.18 per share on September 11. Moreover, market analysts expect it to climb to as high as $179.00 a piece in the upcoming session.
However, the stock remains volatile because of the many challenges the company suddenly faces. The Chinese Government forbade every government employee from using an iPhone while in the workplace in China.
Apple recognizes China as its biggest foreign market and largest production base. Moreover, 24.00% of iPhone sales in 2023 were made in China, 3.00% higher than the 21.00% sold in the US.
In addition, it has an incredible 80.00% operating profit margin in China, far higher than that of any other market.
Also, the European Union (EU) is strengthening the enforcement of the Digital Markets Act (DMA) that took effect in November. The DMA’s primary purpose is to break the monopoly that tech giants have on the market.
Specifically, the DMA targets the iPhone by allowing users to buy and install apps from outside the App Store. Currently, the App Store charges 15.00% to 30.00% commission on app and in-app sales.
Revenue from the Apple App Store made up 25.90% of the company’s total Europe revenue, boasting a 70.50% gross margin. Unfortunately for the iPhone, the EU endeavors to help alternative app stores thrive to facilitate healthy market competition.
iPhone 15 Release Eases Pressure on Apple
AAPL will livestream the launch of its iPhone 15 at 10:00 a.m. on September 12 from its headquarters in Cupertino.
First, the iPhone 15 line will switch to USB-C charging in accordance with EU legislation. This law intends to minimize the number of chargers and cables mobile phone users need to have.
Next, there’s the first 10x optical zoom camera of the iPhone 15 Ultra, bringing it on par with Android competitors. However, the new and improved camera adds $200.00 to the price, to a total of $1,299.00 price tag.
Lastly, consumers expect the new AirPods to come with USB-C-compatible charging cases. Enthusiasts also expect to see the unveiling of the Apple Watch Series 9 as well as the Ultra 2 Smartwatch.
Despite the hype, market analysts predict a stormy road ahead as AAPL faces challenges from both Europe and China.
