Apple's stock price fell approximately 151 tbsp as of March 22nd due to an antitrust lawsuit. How will this lawsuit affect Apple? And what will happen to LG Innotek, which is collaborating on iPhone camera technology?
1. Apple Antitrust LawsuitIran?
The U.S. Department of Justice has filed a lawsuit against Apple, the world's largest tech company. ‘Allegations of illegal monopoly due to monopolizing the smartphone market and creating a closed ecosystem.’filed a lawsuit.
The Justice Department alleged that Apple controlled iPhone features, preventing competitors from providing innovative software. They also found it problematic that Apple prevented users from using digital wallet services from other companies, aside from its own Wallet app.
Key Issues in Apple's Antitrust Lawsuit
- closed ecosystem
- App Store Exclusive : App developers Forced to distribute apps only on Apple platformsSo it limits competition.
- Payment system monopoly : A 30% fee is charged for in-app purchases. Reduced developer revenue and consumer harm
- data monopoly : User data Stifling innovation by not sharing with other competitors Do it.
- Exclusive market dominance
- App Store sales monopoly of 85% Influence app developersbox
- smartphone Exclusive position with a market share of over 15% secure
- Consumer and developer harm
- Decreasing developer revenue and hindering innovation
- Limiting consumer choice and driving up prices
3. Apple's position
- Apple is competing fairly in the competitive mobile phone market.
- App Store fees cover the costs of app development and maintenance.
- We prioritize data protection and privacy.
- Closed ecosystems are essential for innovation and quality assurance.
4. Litigation Outlook and Impact
Apple is expected to face significant repercussions from the powerful US Department of Justice. This lawsuit could potentially lead to significant changes to Apple's current business model.
This lawsuit appears likely to result in stricter regulations on Apple (including opening up its in-app payment system, mandating data sharing, and lifting its App Store monopoly).
The U.S. Department of Justice is actively intervening in Big Tech's monopolies.
If the US Department of Justice wins this lawsuit and strengthens regulations against Apple, structural changes in the smartphone market are expected. Competition in the mobile phone industry will intensify, and the likelihood of new platforms emerging will increase.
5. Apple's lawsuit Impact on LG Innotek
Apple and LG are collaborating on technology in a variety of areas. In particular, LG Innotek supplies camera modules for Apple's core product, the iPhone, and Apple reportedly accounts for approximately 701,000,000 of LG's total sales.
Therefore, the rise and fall of Apple's stock price can have a very sensitive impact on its partner, LG Innotek. The recent decline in Apple's stock price due to sluggish iPhone sales in China has led to a decline in the stock prices of LG Innotek and LG Display.
Likewise, the stock price decline resulting from Apple's antitrust lawsuit is expected to continue to impact the stock prices of key partners such as LG Innotek.
Apple's current stock price
Apple's stock closed at $171.37, down $4.091 (as of March 22). Apple (APPLE) shares have fallen $7.691 (TP3T) this year, while the S&P 500 has gained $10.511 (TP3T).
