JPMorgan believes that despite some revenue and earnings per share resistance, Apple’s new cut in App Store fees for most developers may have limited impact on Apple’s financial condition. Apple announced the plan on Wednesday to cut in app purchase commission to 15% (down from 30%) for developers with annual revenue of less than $1 million in its app store. The plan will take effect from January 1, 2021. In a note to investors, J.P. Morgan chief analyst Samick Chatterjee said the plan is likely to be Apple’s response to growing scrutiny of its business practices. Samick Chatterjee believes that the plan will cover most developers, but will affect a much smaller proportion of app store revenue drivers. The benefits will apply to small businesses and independent developers rather than major platforms, so the impact on potential benefits is relatively small. In addition, the analyst said Apple’s 15% cut in rates for small businesses and individual developers could be permanent. < / P > < p > as for the impact on apple, the analyst believes that investors will look at broader earnings risk pricing around a moderation in rates across the developer community. JPMorgan currently estimates that every 5% reduction in App Store fees will reduce earnings per share by 3%. At present, the investment bank estimates that, based on 31 billion downloads, the app store will generate revenue of about $16 billion, with a total revenue of $55 billion. According to Apple’s latest data, the app store has about 585 million subscriptions. < / P > < p > based on 2022 earnings per share of $4.85 and a mixed P / E ratio of about 31 times, samic chatterjeevy maintains the target share price of AAPL of $150 in this note. After 12 years, “world class Super project” Shantou Bay Tunnel ushers in a historic breakthrough today