Hey Gotraders,
It’s Friday! Yeah! 🙌
Let’s take a look at Apple (AAPL) and some of the changes it plans to implement in regards to its app store before we end off this week.
What’s the back story? Apple and Google (GOOG) both run their own app stores. Users have to complete payments on the app stores if they want to subscribe to an app or make in-app purchases. App developers are not allowed to provide links to their own websites for users to complete payments. Apple and Google have been charging app developers commissions between 15% - 30% of gross sales.
App developers were obviously not happy with the high commissions being charged. Governments started to take notice. Apple was under investigation by the Japan Fair Trade Commission. Some countries even have legislation to try and stop this. Just this week, South Korea implemented an “Anti-Google Law” which was finally approved!
What are Apple and Google doing about this? Apple has said that SOME apps will be allowed to provide a link to their websites for users to make payments, starting next year. The rule applies to so-called “reader apps” that link to content subscriptions, but not to game-oriented in-app purchases. Google has yet to announce any changes to its app store policies. Google needs to catch up…Otherwise, developers may opt to offer their services solely on the Apple store!
Why is this important? Developers such as Spotify (SPOT) claim that Apple’s App Store breaks competition rules. The new rule will allow streaming businesses to have higher margins on subscriptions and will enable these companies to more efficiently convert potential iPhone customers to subscribers.
Shares of “reader apps” such as Spotify, Netflix (NFLX), Tinder (MTCH) and Bumble (BMBL) all closed higher yesterday!
Do note that the U.S. Stock Market is closed on Monday, 6th September due to Labour Day.
📉 Turbulence onboard Virgin Galactic’s space flight? 👨🚀
Richard Branson, CEO of Virgin Galactic (SPCE) made history a few weeks ago when his company flew the first commercial flight to space, with him onboard. It seemed like a successful flight, and the company got some good PR out of it.
But the media is reporting that the rocket went off course during its descent. Uh oh…. Turbulence onboard?
The Federal Aviation Administration (FAA) is now officially conducting a “mishap investigation” into Richard Branson’s flight to space. The FAA is also grounding all Virgin Galactic space missions while the investigation is ongoing.
Shares of Virgin Galactic closed 2.95% lower for the day, at $25.99.
📉 The chip shortage is seriously affecting automobile manufacturers 🤦
The ongoing global shortage of semiconductor chips continues to affect dozens of industries. One of the more visibly impacted industries is the auto industry. Several companies have resorted to delaying or even halting productions, which has affected their bottom lines.
For example, Ford’s (F) August sales of its new vehicles plummeted by 33% compared to last year.
General Motors (GM) is significantly cutting its North American vehicle production by extending downtimes at eight plants in the U.S., Canada, and Mexico.
Tesla (TSLA) halted production in China last month.
The list goes on….
Shares of Ford and GM are down 7.20%, and 15.43% respectively, while shares of Tesla are up 3.19% over the last month.
Top movers & shakers 🎢
What else is making headline news 📰
FTC looking into broken ice cream machines at McDonald's (MCD).
Alibaba (BABA) and Baidu (BIDU) offer a tempting risk/reward ratio at these levels.
A fake Banksy NFT sold for more than $300,000. Then the buyer got his money back.
Inflation could repeat the 1960s when the Fed lost control, Niall Ferguson says.
China’s tech giants pour billions into Xi’s vision of ‘common prosperity’.
The latest target of China’s tech regulation blitz: algorithms.
AstraZeneca (AZN) reaches a settlement with the EU on COVID-19 vaccine delivery.
That’s all from us for now.
Signing out,
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The legal stuff 🤓
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