JPMorgan does not see Digital Markets Act impacting iPhone ramp

JPMorgan keeps an Overweight rating on Apple after the company on Friday outlined a delay in rolling out artificial intelligence-enabled iPhones in the European Union due to the Digital Markets Act. The analyst does not expect a significant impact to the iPhone upgrade cycle. Western Europe excluding the UK accounts for about 14% of total iPhone volumes, the analyst tells investors in a research note. The firm expects year one of an anticipated two-year “stair-step volume ramp” to be relatively unaffected by the dynamics in the EU market, and expects that there is ample time to resolve the challenges in fiscal 2025 before it can impact the forecasts.