It’s the kind of news that likely won’t surprise anyone, but tech giant Apple (NASDAQ:AAPL) is now working to throw out a billion-dollar lawsuit against it filed in the United Kingdom. Naturally, a move to save a billion bucks or so won’t go amiss with investors, and they gave Apple stock a fractional boost in Tuesday morning’s trading.
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The case—worth £785 million or about $1 billion—focused on commissions in the App Store. It’s a “mass lawsuit,” which is roughly the British equivalent of a class-action lawsuit, and was brought into courts by a coalition of over 1,500 app developers. Apple, meanwhile, noted that 85% of developers don’t actually pay any commission at all—likely because their apps don’t sell—and wants the Competition Action Tribunal hearing the case to throw it out as it’s “unsustainable.”
Apple notes that customers would only have a claim if they were charged for purchases made, which would represent a slim portion of those involved. Meanwhile, the app developers’ lawyer notes that Apple has “…abused its position…” by overcharging those with an app in the store.
The Hardware is Holding Up…For Now
Meanwhile, there’s some mixed news for Apple on the hardware front. The good news is that the new Apple Vision Pro headset has sold out, a move that raised a nice big pot of cash for Apple. However, TF International Securities analyst Ming-Chi Kuo notes that might represent the limit of demand for the headset. Kuo points out that new iPhones continue seeing shipping times increase even after the initial sell-out. On the other hand, the Vision Pro’s shipping time is holding steady.
What is the Forecast for Apple Stock?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 23 Buys, eight Holds, and one Sells assigned in the past three months, as indicated by the graphic below. After a 37.1% rally in its share price over the past year, the average AAPL price target of $203.89 per share implies 4.88% upside potential.
