As the year draws to a close, Apple finds itself navigating a complex landscape defined by a pivotal legal ruling and an uncharacteristic shift in sales strategy. The tech giant secured a crucial victory concerning its business model in a protracted legal battle, even as it faces fresh competitive pressures that have prompted aggressive pricing moves ahead of the critical holiday quarter.
Unprecedented Discounts Signal Competitive Pressure
In a notable departure from its typical playbook, Apple has initiated significant price reductions on its latest hardware across European and international markets. Industry reports indicate the iPhone 17, launched just in September, is now being offered for approximately 850 euros, with similar discounts applied to the new iPad Pro featuring the M5 chip.
This strategy marks a sharp contrast to Apple’s historical aversion to direct price cuts so soon after a product launch. Market observers interpret this move as a direct response to intensifying competition within the smartphone sector. The apparent goal is twofold: to clear existing inventory and aggressively expand its installed user base. This groundwork is seen as essential ahead of the planned monetization of new AI features slated for 2026. The broader objective remains securing the double-digit growth targeted for the company’s first fiscal quarter.
A Nuanced Outcome in the Epic Games Antitrust Case
The legal confrontation with Epic Games reached a significant juncture this Sunday. A U.S. federal appeals court delivered a mixed verdict, presenting both a challenge and a substantial win for Apple.
Should investors sell immediately? Or is it worth buying Apple?
The court upheld a lower court’s finding that Apple was in civil contempt for violating a court order by making it difficult for developers to steer users toward alternative payment methods outside the App Store. However, the ruling concurrently delivered a major strategic victory for the iPhone maker. It overturned a blanket injunction that had prohibited Apple from collecting any commission on transactions processed through these external links.
This decision preserves Apple’s ability to generate revenue from sales occurring outside its proprietary storefront. The case now returns to the district court to determine what constitutes a “fair” commission rate for such transactions. While analysts anticipate the final rate will likely fall below the historical 27% to 30% range, the ruling is widely viewed as safeguarding the high-margin Services division’s fundamental revenue model.
Share Price Holds Steady Amid Strategic Shifts
Investors have thus far reacted with equanimity to the confluence of legal developments and the new discount-driven sales approach. Apple shares closed the week at 237.05 euros, maintaining proximity to the 52-week high of 246.20 euros. The market’s response suggests that reassurance over the protected Services revenue stream carries greater weight than concerns regarding reputational damage from the contempt ruling.
All eyes now turn to January 29, 2026. The upcoming quarterly earnings report will serve as the first clear indicator of whether the discount strategy successfully boosted unit sales and how it impacted overall margins. Simultaneously, the pending judicial determination of a “fair” commission rate stands as the next critical variable for the company’s long-term profitability profile.
Ad
Apple Stock: Buy or Sell?! New Apple Analysis from December 14 delivers the answer:
The latest Apple figures speak for themselves: Urgent action needed for Apple investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from December 14.
Apple: Buy or sell? Read more here...
