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Investment firm JP Morgan shares how it believes recent Apple business moves will affect the company in the coming months.
In a note seen by AppleInsider from JP Morgan, the investment firm shared its views on recent developments at Apple. Topics covered by the note include Apple Pay Later , in-house modem development, supply chain diversification, EU regulation, and the $1 billion Germany expansion.
Apple Pay Later won’t provide material revenue in the near term, says the note. The payments market is a marathon, not a sprint, and Apple is expected to have a low single-digit market share by 2025 — or approximately 200 million in revenue.
The iPhone could have an in-house modem by 2024, but it would appear first in a new iPhone SE, not a flagship iPhone. This signals Apple is taking a more conservative approach with the rollout while it continues to rely on Qualcomm.
JP Morgan also estimates that Apple will move 25% of its supply chain outside of China by 2025. The number is closer to 5% today, but Apple will increase its reliance on Vietnam and India going forward.
The European Commission views Apple’s anti-steering policies as anti-competitive. The company will likely comply with regulations, but moderate user adoption of paying outside the App Store will likely provide limited headwinds.
The note also discussed Apple’s $1 billion investment to expand its German design center. Apple Silicon‘s development has benefited from the Munich-based design team, so any investment there drives the future of that platform.
