Apple (AAPL) has implemented major changes for its iOS and iPadOS users within the European Union. The company will enable users to remove certain pre-installed apps, including the App Store, Safari, Photos, Messages, and Camera. This development is in response to the EU’s Digital Market Act (DMA), which aims to boost competition in the digital marketplace.
Additionally, the company will provide users with more information about available browsers on the browser choice screen. This change will be implemented for all EU users who have Safari as their default browser.
The update, planned for later this year, will let users replace Apple’s default phone call and messaging apps with third-party alternatives. While Apple has previously allowed third-party browsers and contactless payment methods, the upcoming changes will make these options more accessible.
Addressing EU Concerns
Apple’s decision follows ongoing discussions with the European Commission about compliance with the DMA. The EU has raised concerns about Apple’s App Store practices, claiming that they restrict developers from offering alternative purchase methods.
Importantly, AAPL could face a significant fine, up to 10% of its global revenue, if found in violation of the law.
Is Apple a Buy, Sell, or Hold?
Rising iPhone shipments and the integration of advanced AI into its PCs point to the company’s long-term growth prospects. Nevertheless, intense competition in the AI market keeps Wall Street analysts cautiously optimistic about the stock.
AAPL has a Moderate Buy consensus rating based on 24 Buys, eight Holds, and one Sell rating assigned by analysts in the past three months. The analysts’ average price target on Apple stock of $247.43 implies 10.2% upside potential.
