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JP Morgan Shares Insights on Recent Apple Business Moves

Tech giant Apple has been making significant business moves in recent times, from expanding its financial services to diversifying its supply chain. These developments are set to have far-reaching effects on the company, and investment firm JP Morgan has shared its views on what the future holds for Apple.

Apple Pay Later, the company’s new financial service, is unlikely to provide significant revenue in the near term, according to a note from JP Morgan. With the payments market being a marathon, not a sprint, the firm predicts that Apple will have a low single-digit market share by 2025, equating to approximately $200 million in revenue.

The note also sheds light on Apple’s plans to develop an in-house modem. While the technology could debut as early as 2024, it is likely to be featured in a new iPhone SE rather than a flagship iPhone. This move signals that Apple is taking a more conservative approach to the rollout, as it continues to rely on Qualcomm.

Furthermore, JP Morgan estimates that Apple will shift 25% of its supply chain outside of China by 2025, a significant increase from the current 5%. Vietnam and India are set to become more critical players in Apple’s supply chain going forward.

Apple’s anti-steering policies have also been a topic of discussion, with the European Commission viewing them as anti-competitive. While Apple is likely to comply with regulations, JP Morgan suggests that moderate user adoption of paying outside the App Store is unlikely to provide significant headwinds.

Finally, the note delves into Apple’s $1 billion investment in expanding its German design center. The Munich-based team has been instrumental in the development of Apple Silicon, and any investment there is expected to drive the future of the platform.

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