In 2025, Apple faces significant challenges from regulatory pressures and AI competition that could impact its long-term profitability. The App Store, previously generating $27 billion in 2023, is threatened by new regulations in the U.S. and EU, compelling Apple to lower its 30% commission rate and allow external payment systems. Analysts predict that this could reduce earnings per share (EPS) by up to 5%. Concurrently, Apple is shifting its AI strategy, moving from in-house innovations to partnerships with companies like Google and OpenAI to enhance services like Siri. This hybrid approach poses both opportunities for growth and risks of dependency on third-party technologies. For investors, the dual challenges highlight the importance of monitoring regulatory outcomes and AI execution. Apple’s strategic investments signal its commitment to remaining a tech leader amidst changing landscapes. Balancing inherent risks with long-term potential will be critical for stakeholders.
Source link
