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Apple faces significant challenges in August 2024.

Current Challenges for Apple

As August begins, Apple faces a barrage of bad news. Typically, the summer months are quiet, but this year, Apple is turning everything upside down. Firstly, a surprising developer update for iOS was announced. But that’s not all; much has happened at Apple in recent days.

iPhone Redesign by the Court?

In March, reports surfaced that the US Antitrust Division was planning a lawsuit against the tech giant. This lawsuit has now been filed and is supported by 16 states.

The opponents' arguments are varied, with the main point being that Apple makes it difficult for users to switch away from Apple. Specifically, the lawsuit claims that Apple deliberately and artificially hinders the switch from Apple to other smartphones to ensure that customers stay with Apple.

Shortly after the lawsuit was filed, Apple rejected it as false. According to their statements, they are allowed to determine their operating system and everything around it themselves, and therefore there can be no talk of an artificially created monopoly.

A few days ago, the next step in this case occurred. Apple has called on a federal judge to dismiss the lawsuit. Such a request is expected in a case of this size. The judge now has time to decide whether the case will still go to court.

Currently, no specific court date is set, and experts on the US system do not expect a start before 2026.

A Veteran Investor Bails (Halfway)

Warren Buffet and his investment firm Berkshire Hathaway held about $84 billion in Apple stock for a long time (8 years). But this year, Buffet decided to sell shares. In the first quarter, it was nearly 13%. The reason at the time was taxes. Buffet and his team expected tax benefits from this sale.

Recently, another bombshell: In the first quarter, Buffet mentioned a “small Apple sale”. The latest reports say that his company sold 49% of their Apple stock.

Whether 49% is still small for Buffet is unclear. Currently, there is no statement from Berkshire Hathaway or Warren Buffet.

Possible Reasons for the Sale

Buffet was and is never a big fan of having too much of one “thing”. That means if the Apple stock in his portfolio became overweight, this could also be a reason for the sale. But as long as there is no statement, everything else is unconfirmed speculation.

Current Apple Stock Price

August has brought not only legal and business challenges for Apple but also a significant impact on the stock price. Currently, the Apple stock is at 189.64 euros, representing a 10% drop in the last month. However, the stock is still 17.28% up compared to last year.

Current Event Description Possible Impact
US Antitrust Lawsuit Allegation of hindering the switch from Apple to other smartphones. Possible changes in iPhone redesign; court case likely not before 2026.
Warren Buffet’s Stock Sale Berkshire Hathaway sells 49% of their Apple shares. Potential impact on Apple’s stock price and market value.
Developer Update for iOS Surprising announcement of a new update for developers. Changes and improvements for iOS developers and users.
Current Stock Price Apple stock currently at 189.64 euros, down 10% in the last month. Yearly comparison: stock still up 17.28%; potential volatility in the near future.

Conclusion

Overall, things are shaking up at Apple. We remain curious to see if this is all just noise or if these could be the first bad omens for Apple in a long time.

Source: Heise, Heise, MacTechNews, CNBC

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