Apple (AAPL) Stock Down 1% as Company Wants to Let Users Switch Default iPhone Apps to Rivals
Feb 26, 2020 at 10:56 am UTC by Tolu Ajiboye
· 3 min read
Apple is reportedly set to give iPhone users the opportunity to install third-party apps as default for mail and browser. AAPL stock loses 1%.
The iPhone’s operating system is known to be quite closed. While it is not reduced in functionality, Apple (NASDAQ: AAPL) controls pretty much all of the default apps that are pre-installed on the iPhone. This decision by the tech giant has ensured a certain level of monopoly with its products but has angered many other projects that design applications for mobile smartphone users.
It would seem that the heat from unsatisfied competitors is starting to catch up with the tech giant. At the moment Apple is considering allowing other third-party apps to function as default apps on the iPhone and other Apple products.
Apple Might Allow Rival Apps As Default On iPhone
Apple’s app store was launched back in 2008. Since then, all of Apple’s mobile devices have come pre-installed with Apple default apps. For many functions, Apple does not allow third-party rival apps to run on its devices. However, a Bloomberg report suggests that this might change soon.
For a while now, Apple has been feeling the heat from this decision. According to the report, Apple faced a hearing on the matter before the US House of Representatives last year. Members of the house demanded to know why users don’t have the option of third-party apps as default options.
Another report from Patently Apple suggests that even the EU commission and Russian authorities have the same thoughts. It would seem that Apple can no longer ignore the pressure to do something about this.
Rival Apps Being Considered as Default
People familiar with the matter have said that Apple is considering allowing rival apps as default for browser and mail functions. Since 2008, Apple’s own mail app and its Safari browser have been the only apps allowed on its products for these functions. As popular as other browser apps like Google Chrome and Firefox are, iPhone users do not have access to them and must use the Safari browser.
The same thing is applicable for mails. Popular rival apps like Microsoft Outlook and Gmail are outside of iPhone users’ reach. On the Android, for example, users have the option of selecting multiple browsers when they tap on a link. To send an email, Android users can use Gmail or any other third-party apps.
Apart from allowing default rival apps, Apple is also considering easing up on certain constraints placed on other apps. Music streaming service Spotify, which is a direct rival for Apple Music, might be allowed a few more liberties.
AAPL is a Go
Apple stock (NASDAQ: AAPL) fell almost 1% in response to the news and is currently trading at $316. Regardless of the ignorable drop, AAPL is generally still performing impressively. In fact, in the last one month, estimates for the quarter have increased to $2.98 from $2.84 per share. For the whole year, estimates are now at $13.78 from $13.16. This points to the fact that Apple is not just performing well but the market is also bullish.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
Microsoft (MSFT) stock rose by over 6% yesterday after the company announced it had acquired Affirmed Networks to deliver new opportunities for a global 5G ecosystem. The FAANG stocks were on the winning side with a surge of 5% on average.