Apple App Store Settlement Reveals Updates: How Did A BofA Analyst React?

Although Apple Inc.’s AAPL App Store changes are still pending court approval, they will resolve a class-action suit from U.S. developers, according to BofA Securities.

The Apple Analyst: Wamsi Mohan reiterated a Neutral rating for Apple, while keeping the price target unchanged at $160.

The Apple Thesis: The judge may approve this settlement and apply some of the changes for the ruling in the EPIC Games suit, Mohan said in the note.

The analyst mentioned the latest App Store changes:

• Developers can share purchase options with users outside their iOS app.
• The price points that developers can offer for subscriptions, in-app purchases and paid apps have been expanded.
• A new fund has been established to assist qualifying U.S. developers.

“Developers would benefit from this settlement as they get more flexibility than they had desired,” Mohan wrote.

“Apple could be negatively affected if a significant number of purchases are outside the App store. Apple does not get paid a commission on any purchases taking place outside of the App or the App store,” he noted.

AAPL Price Action: Shares of Apple had risen by 0.32% to $148.06 at the time of publication Friday morning.